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Wednesday, July 8, 2009

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Securities Commission to switch up registration By VERNON CLEMENT JONES ~ Guardian Business Editor ~ vernon@nasguard.com: The Securities Commission in aiming to switch up the way it registers industry participants, its draft legislation proposing to list them by function and, as by the current method, "category." "One of the key changes in the draft Securities Industry Act and draft Securities Industry Regulations (the draft Securities Legislation) is the fundamental restructuring of the present system for registration," says Executive Director Hillary Deveaux, in a release introducing the change. "Persons registered under the existing Securities Industry Act, 1999 are presently registered by category, whereas the provisions in the draft Securities Legislation establishes a system that will require market participants to be licensed to carry out specific functions that will be expressly identified in the registrant's license." He argues the new approach will result in a clearer and more functional system, with issues relating to the appropriateness of the licensing/registration status of persons "no longer be(ing) of concern." Under the new registration regime, an incorporated entity applying for registration to conduct securities business must specify what activities it plans to carry on and the firm will be registered accordingly. The scope of that business is outlined in four categories: Dealing in securities; arranging deals in securities; managing securities; and advising on securities. It's worth noting that the draft Securities Industry Regulations don't yet specify the various regulatory requirements for each of those activities. The Commission is now, however, developing rules which address those standards. It has also still to release rules relating to fees, regulatory capital, physical presence and insurance requirements, prior to moving the legislation forward. The commission has in fact listed the wrapping-up of the entire process as a top priority for 2009, that pledge coming after last year's failure to do the same. The draft also allows for individual registration; i.e. CEO, compliance officer, dealing representative, discretionary management representative or advising representative. That registration isn't necessarily portable however. "It will be directly linked to the firm in relation to which he is registered thus the representative can only register to carry on those securities activities that the firm is registered to undertake," says the commission. The draft securities legislation also attempts to ensure that the requirements for registration of each of the various categories of registrants are transparent and relevant to the nature of their respective function. "It is hoped that the rationale for many of the registration requirements is more clearly established throughout this legislation," says the commission. For more see Registration on BR2. Friday, June 26, 2009