29. Grant of dealer’s licence or investment adviser’s licence
Feedback & supportA dealer’s licence shall only be granted to a body corporate.
dealer
“dealer” means a person who carries on a business of dealing in securities as a body corporate whether or not he carries on any other business, but does not include an exempt dealer;
A dealer’s licence shall only be granted if the dealer meets and continues to meet such minimum financial requirements as may be determined by regulations made by the Authority, either generally or specifically, or are provided in such rules of a securities exchange as have been approved by the Authority.
licence
“licence” means —(a)a dealer’s licence;(b)an investment adviser’s licence; or(c)a representative’s licence,under Part IV;
Subject to section 28(3) and the regulations made under this Act, where an application is duly made for the grant or renewal of a dealer’s licence or investment adviser’s licence, the Authority shall refuse the application if —
investment adviser
“investment adviser” means a person who —(a)carries on a business of advising others concerning securities;(b)as part of a regular business issues or promulgates analyses or reports concerning securities; or(c)pursuant to a contract or arrangement with a client, undertakes on behalf of the client (whether on a discretionary authority granted by the client or otherwise) the management of a portfolio of securities for the purpose of investment,but that expression does not include —(i)a bank as defined in section 2 of the Banking Act; (ii)a company or society registered under the Insurance Act; (iii)an advocate and solicitor or accountant in practice whose carrying on of that business is solely incidental to the practice of his profession;(iv)a company registered under the Trust Companies Act; (v)a dealer or his employee or a dealer’s representative or an exempt dealer whose carrying on of that business is solely incidental to the conduct of his business of dealing in securities; or(vi)a person who is the proprietor of a newspaper and holder of a permit issued under the Newspaper and Printing Presses Act, where —(A)insofar as the newspaper is distributed generally to the public it is distributed only to subscribers to, and purchasers of, the newspaper for value;(B)the advice is given or the analyses or reports are issued or promulgated only through that newspaper;(C)that person receives no commission or other consideration for giving the advice or for issuing or promulgating the analyses or reports; and(D)the advice is given and the analyses and reports are issued or promulgated solely as incidental to the conduct of that person’s business as a newspaper proprietor;
in the case of an applicant who is a natural person —
the applicant has been adjudged a bankrupt whether in Singapore or elsewhere;
the applicant has been convicted, either within Singapore or elsewhere, within the period of 10 years immediately preceding the date on which the application was made, of an offence involving fraud or dishonesty punishable on conviction with imprisonment for a term of 3 months or more;
the Authority is not satisfied as to the educational qualification or experience of the applicant having regard to the nature of the duties of a holder of an investment adviser’s licence;
the Authority has reason to believe that the applicant is not of good fame and character; and
the Authority has reason to believe that the applicant will not perform the duties of a holder of an investment adviser’s licence efficiently, honestly and fairly; or
in the case of an applicant that is a body corporate —
the body corporate is in the course of being wound up under the Companies Act [Cap. 50]; (ii)the body corporate is a body corporate in respect of property of which a receiver, or a receiver and manager, has been appointed under the Companies Act;
the body corporate has, whether within or outside Singapore, entered into a compromise or scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation;
the Authority is not satisfied as to the educational qualifications or experience of the officers of the applicant who are to perform duties in connection with the holding of the dealer’s licence or investment adviser’s licence, as the case may be; and
the Authority has reason to believe that the applicant will not perform the duties of a holder of a dealer’s licence or an investment adviser’s licence, as the case may be, efficiently, honestly and fairly.