Categories of Regulated Investment Dealers

The IDLO in Section 8 provides for the licensing of a company or partners in a partnership to be licenced as:

  • Investment advisers ("adviser's licence");
  • Investment dealers acting in an execution only capacity ("execution only licence");
  • Investment dealers ("full licence"). Holders of the full licence may; offer advice, trade on behalf of customers, act as fund manager (see below) and solicit subscriptions for new issues of investments; and
  • Fund managers who trade in investments on behalf of mutual funds ("fund managers licence").

No person may act as an investment dealer without a licence. It is an offense which carries a fine of $25,000 or a term of 2 years imprisonment or both.