The Licensing Process

Under the Capital Markets and Services Act (CMSA), anyone wishes to carry out capital market activities (unless a registered person) is required to be appropriately licensed. The Securities Commission (SC) is the sole licensing authority that licences capital market intermediaries engaged in regulated activities.

Under the CMSA single licensing regime, capital market intermediaries provided that they are fit and proper is issued with only one licence that will enable them to carry on one or more regulated activity.

The SC is entrusted with the responsibility of ensuring an efficient and transparent licensing process and that the licensed intermediaries and its representatives are competent and professional in providing their services. Certified as an ISO 9001:2000 department, the SC’s Licensing Department undertakes the assessment of licence applications under its preview which is conducted within the time frame stipulated in accordance with its ISO performance standards.

There are two main types of licensing applications, namely-

• New and renewal of Capital Markets Services Licence (CMSL)
• New and renewal of Capital Markets Services Representative’s Licence (CMSRL)

The process of assessment involving these applications is shown ( pdf). Renewal of CMS and CMSR licences is done electronically via the Electronic Licensing Application System (ELA). Access to the ELA system is provided only to licensed CMSL holders.

Licensing Application Kits are available on the SC’s website. For applications to be assessed and approved in accordance with the SC’s client charter, they must be complete and meet the requirements of the Licensing handbook. The SC monitors licensees’ continuous compliance with the provisions of the securities laws, licensing requirements and conditions.

Client Charter

Who Are Licensed by SC

The SC issued 2 types of licences namely CMS and CMSR which set out the following specific regulated activities that can be conducted:

• Dealing in securities
• Trading in futures contracts
• Fund management
• Advising on corporate finance
• Investment advice
• Financial planning

The CMSL is the licence that is granted to a principal while the CMSRL is the licence that is granted to a representative to enable him to carry on any one or more regulated activity on behalf of his principal.