Investment Dealers FAQs

What criteria are used to determine whether an application for a licence is "fit and proper"?

In determining whether an individual is "fit and proper" the Commission will assess applicants against its fit and proper guidelines including a person's : (a) integrity, honesty and reputation (b) knowledge and experience and (c) Financial Stability.

What information is required for approval of the appointment of directors/Shareholders/Senior Officers of licence holders?

information that must be submitted for the approval of Directors/Shareholders/Senior Officers of licence holders: Application for approval of changes of shareholders, directors and Officers of a Regulated Business, biographical affidavit, statement of affairs, curriculum vitae, professional reference, bank reference from a regulated commercial bank within the TCI or country of permanent residence, police certificate from place of permanent residence, and certified copy of passport photo page.

What is a Professional Indemnity Insurance?

A Professional Indemnity Insurance is a type of insurance designed to protect your business against losses arising out of claims of negligence or breach of duty by the licencee or by an employee of the licencee, against dishonesty of the licencee or employees of the licencee and loss of documents. Both the Insurance Company and policy amount should be approved by the Commission as stated in the Company Management (Licensing) Ordinance.

What is required from my bank to assure the Commission that I can meet my capital requirements?

The bank is required to submit an independent verification stating that the required capital is being held and will not be reduced or transferred without the expressed written permission of the Financial Services Commission.

Is the licence conditional on the dealer having specific training in securities?

The applicant must demonstrate the relevant work experience, appropriate knowledge, qualifications and skills in the context of the position in question.