Licensing Requirements

The Securities Act requires individuals or companies wishing to enter the securities industry as dealers, investment advisers or their representatives, to be licensed by the Financial Services Commission.

Under Section 2(1) of the Act, a dealer is a person who carries on the business of dealing in securities, whether as principal or agent. Basically, dealing in relation to securities under the Act, means acquiring, disposing of, subscribing for or underwriting securities, or making or offering to make, or inducing or attempting to induce a person to make or offer to make, an agreement regarding securities.

On the other hand, an investment adviser is a person who carries on an investment advice business, which means advising persons regarding investing in or the buying or selling of securities. Under the Act, dealers and investment advisers are licensed, while their representatives are registered. In considering the qualifications to be met by persons applying to be licensed as dealers or investment advisers and to be registered as Representatives, the Commission had to establish educational and financial criteria to be satisfied by all applicants.

These have been formulated and are embodied in the Securities (Licensing and Registration) Regulations, 1996 which were approved by the Honourable Minister of Finance on the 15th May, 1996 and published in the Jamaica Gazette on the 20th May, 1996.