A person (company or individual) may be regarded as carrying on business dealing in securities if that person (whether acting as principal or agent) by way of business makes or offers to make an agreement with another person to enter into or offer to enter into an agreement, for or with a view to acquiring, disposing of, subscribing for or underwriting securities or in anyway effects or causes to effect a securities transaction; or manages a portfolio of securities for another person on terms under which the first mentioned person may hold property of the other person.

Such a person must be licensed by the ECSRC.

The ECSRC may revoke a licence granted to an individual under Part IV of the Securities Act if that individual -

1. is shown by certified medical evidence to be mentally or physically incapable of performing the activities to which the licence relates;
2. is adjudged as bankrupt, in a member territory of the Eastern Caribbean Currency Union or elsewhere;
3. is convicted, whether in a member territory of the Eastern Caribbean Currency Union or elsewhere, of fraud or any other offence involving dishonesty;
4. is convicted of an offence under the Securities Act or regulations made under the Securities Act;
5. contravenes or fails to comply with any condition applicable in respect of the licence;
6. ceases to carry on the business for which that individual is licensed;
7. is the holder of a representative licence and the licence of the licensee to whom that individual is accredited is revoked or suspended;
8. fails to pay the annual licence fee as prescribed on or before the anniversary of the day of the grant of the licence; or
9. by reason of any other circumstances, is no longer a fit and proper person to hold a licence.

The ECSRC may also revoke a licence at the request of the licensee.

The ECSRC may revoke a licence granted to a company under Part IV of the Securities Act if -

1. the company goes into liquidation or is ordered to be wound up;
2. a receiver or manager of all or a substantial part of the property of the company is appointed;
3. the company ceases to carry on the business for which it is licensed;
4. it has reason to believe that the company, or any of its directors or employees, has not performed its or his duties honestly and fairly;
5. the company contravenes or fails to comply with any condition applicable in respect of the licence;
6. the company is in breach of the Securities Act or any regulation made under the Securities Act;
7. where applicable, the company does not continue to employ at least one person who holds the appropriate representative licence granted under the Securities Act;
8. the company fails to pay its annual licence fee as prescribed on or before the anniversary of the day of the grant of its licence; or
9. by reason of any other circumstances, the company is no longer a fit and proper person to hold a licence.

The ECSRC may also revoke a licence at the request of the licensee.

Any person wishing to apply for any of the licences granted by the ECSRC may do so in accordance with the ECSRC'S application and licensing requirements. For more information on the ECSRC'S application and licensing requirements please visit here.

No. Unlike a broker dealer, a limited service broker is precluded from:

• providing investment advice, investment banking and underwriting; and
• holding discretionary accounts for customers.

More information on limited service brokers can be accessed via Licensee/Prospective Licensee Resources.

It is a statutory requirement that licensees comply with the Standards of Conduct provisions under PART V, Conduct of Securities Business, of the Securities Act. Section 71 of the Securities Act outlines the thirteen Standards of Conduct provisions as follows:

'...In the conduct of securities business, a licensee shall at all times act according to the principles of best practice and, in particular, shall -

1. observe a high standard of integrity and fair dealing;
2. act with due skill, care and diligence;
3. observe high standards of market conduct;
4. seek from customers information about their circumstances and investment objectives which might reasonably be expected to be relevant in enabling the licensee to fulfil the licensee’s responsibilities to the customer;
5. take reasonable steps to give every customer the licensee advises, in a comprehensible way, any information needed to enable the customer to make a balanced and informed investment decision;
6. avoid any conflict of interest with customers and, where such a conflict unavoidably arises, ensure fair treatment to the customer by complete disclosure or by declining to act;
7. ensure that the interests of the licensee is not unfairly placed above those of the customer;
8. protect by way of segregation and identification, those customer assets for which the licensee is responsible;
9. maintain adequate financial resources to meet the securities business commitments of the licensee and withstand the risks to which the business is subject;
10. organise and control internal affairs in a responsible manner;
11. keep proper records;
12. have adequate arrangements to ensure that all staff employed are suitable, adequately trained and properly supervised, and establish and maintain well-defined compliance procedures; and
13. deal with the Commission in an open and co-operative manner.'

Every licensee is also subject to the provisions of the Securities (Conduct of Business) Regulations.

The following persons do not require an investment adviser licence to give advice on securities:

1. Broker dealers;
2. Financial institutions licensed under the Banking Act;
3. Lawyers or professional accountants who gives advice on securities as an incident to the practice of that person’s profession; or
4. Persons who give advice on securities only in a newspaper, magazine, journal or other periodical publication -
   1. which is generally available to the public; and
   2. which does not have as its principal, or only, objective the provision of advice, or the issue of analyses or reports, concerning securities.

Apart from licensees the ECSRC is also the sole licensing authority for the following securities market institutions:

• Securities Exchanges
• Securities Registries
• Securities Clearing Agencies
• Collective Investment Scheme Custodians
• Collective Investment Scheme Management Companies
• Self-Regulatory Organisations