An activity constitutes a Financial Service under the Regulatory Law 2004
and these Rules where:
(a) it is an activity specified in Rule 2.2.2; and
(b) such activity is carried on by way of business in the manner described in section 2.3.
2.2.2
The following activities are specified for the purposes of Rule 2.2.1:
(a) Accepting Deposits;
(b) Providing Credit;
(c) Providing Money Services;
(d) Dealing in Investments as Principal;
(e) Dealing in Investments as Agent;
(f) Arranging Credit or Deals in Investments;
(g) Managing Assets;
(h) Advising on Financial Products or Credit;
(i) Operating a Collective Investment Fund;
(j) Providing Custody;
(k) Arranging Custody;
(l) Effecting Contracts of Insurance;
(m) Carrying Out Contracts of Insurance;
(n) Operating an Exchange;
(o) Operating a Clearing House;
(p) Insurance Broking;
(q) Insurance Management;
(r) Managing a Profit Sharing Investment Account;
(s) Operating an Alternative Trading System; and
(t) Providing Trust Services.
Guidance
Note that the ambit of these activities in Rule 2.2.2 may be restricted under COB and may be
fettered by the continuing operation of Federal Law.
2.2.3
Each activity specified in Rule 2.2.2:
(a) is to be construed in the manner provided under these Rules; and
(b) is subject to exclusions under these Rules which may apply to such an activity.
2.3.3
A Person does not carry on an activity specified under paragraphs (d), (e), (f)
or (h) of Rule 2.2.2 by way of business if the activity is carried on solely for
the purposes of or in connection with the acquisition or disposal of Shares in
a Body Corporate, other than an investment company or investment limited
liability partnership, provided that:
(a) such Shares carry at least 50% of the voting rights or the acquisition
will take an existing holding to at least 50%; or
(b) the object of the transaction may reasonably be regarded as being the
acquisition of day to day control of the Body Corporate; and
(c) he is to enter as principal into the transaction.
2.3.4
(1) A Person who is an Exchange does not carry on any of the other
activities, save for the activity of Operating a Clearing House or
Operating an Alternative Trading System, specified under Rule 2.2.2
by way of business in circumstances where the relevant activity, is
carried on as a necessary part of the Exchange’s business as an
exchange. [Amended][VER4/08-05]
(2) A Person who is a Clearing House does not carry on any of the other
activities, save for the activity of Operating an Exchange or Operating
an Alternative Trading System, specified under Rule 2.2.2 by way of
business in circumstances where the relevant activity is carried on for
the purpose of, or in connection with the provision of clearing or
settlement services by the Clearing House. [Amended][VER4/08-05]
(3) A Person who is an Authorised Market Institution and authorised to
operate both as an Exchange and as a Clearing House does not carry
on any of the other activities save for the activity of Operating an
Alternative Trading System, specified under Rule 2.2.2 by way of
business in circumstances where the relevant activity:
(a) is carried on as a necessary part of the Authorised Market
Institution’s business as an Exchange; or
(b) is carried on for the purposes of, or in connection with, the
provision of clearing or settlement services by the Authorised
Market Institution.
2.3.5
A Person who is an individual does not carry on an activity specified
under paragraph (t) by way of business where he is acting as trustee,
enforcer or protector or where he is arranging for a Person to act as
trustee, in respect of less than three (3) trusts.
2.23 Providing Trust Services
2.23.1
In Rule 2.2.2 Providing Trust Services means:
(a) the provision of services with respect to the creation of an express
trust;
(b) arranging for any Person to act as a trustee in respect of any express
trust;
(c) acting as trustee in respect of an express trust;
(d) the provision of Trust Administration Services in respect of an express
trust; or
(e) acting as protector or enforcer in respect of an express trust.
Exclusions
2.23.2
Subject to 2.23.3 the following Persons are exempt from the requirement to
hold a Licence in respect of Providing Trust Services:
(a) a Private Trust Company; or
(b) an ASP which Provides Legal Services or Accountancy Services.
2.23.3
Under 2.23.2(b) an ASP may only:
(a) arrange for a Person to act as trustee in respect of an express trust; or
(b) provide services with respect to the creation of an express trust; provided that:
(i) the provision of such services is solely incidental to the
practice of law or accounting as the case may be; and
(ii) the ASP is not holding itself out as Providing Trust Services.
Guidance
Acting as trustee, protector or enforcer or Providing Trust Administration Services are not activities
incidental to the practice of law or accounting and require a Licence.
3.2 Permitted Financial Services for Authorised Firms
3.2.1
Pursuant to Article 42(1)(a) an Authorised Firm, subject to the Rules in this
section, may carry on any one or more of the following Financial Services:
(a) Accepting Deposits;
(b) Providing Credit;
(c) Dealing in Investments as Principal;
(d) Dealing in Investments as Agent;
(e) Arranging Credit or Deals in Investments;
(f) Managing Assets;
(g) Advising on Financial Products or Credit;
(h) Providing Custody;
(i) Arranging Custody;
(j) Effecting Contracts of Insurance;
(k) Carrying Out Contracts of Insurance;
(l) Insurance Broking;
(m) Insurance Management;
(n) Managing a Profit Sharing Investment Account;
(o) Operating an Alternative Trading System; and
(p) Providing Trust Services.
A1.1.3
A sum is not a Deposit if it is received:
(a) by a lawyer registered as an Ancillary Service Provider and acting in his professional capacity;
(b) by an accountant registered as an Ancillary Service Provider and
acting in his professional capacity;
(c) by an Authorised Firm or an Authorised Market Institution authorised
under its Licence to carry on any one or more of the following Financial Services:
(i) Dealing in Investments as Principal;
(ii) Dealing in Investments as Agent;
(iii) Arranging Credit or Deals in Investments;
(iv) Managing Assets;
(v) Operating a Collective Investment Fund;
(vi) Effecting Contracts of Insurance;
(vii) Carrying Out Contracts of Insurance;
(viii) Operating an Exchange;
(ix) Operating a Clearing House;
(x) Insurance Broking;
(xi) Insurance Management;
(xii) Managing a Profit Sharing Investment Account; or
(xiii) Providing Trust Services
in the course of or for the purpose of any such Financial Service
disregarding any applicable exclusions in chapter 2; or
(d) by a Person as consideration for the issue by him of a Debenture.
App 5 FEES
A5.1 Fees table
A5.1.1
The fees table.
(a) Accepting Deposits or Providing Credit
$50,000
(b) Dealing in Investments as Principal
$50,000
(c)
(i) Dealing in Investments as Agent; or
(ii) Arranging Credit or Deals in Investments;
or
(iii) Managing Assets; or
(iv) Advising on Financial Products or Credit;
or
(v) Providing Custody; or
(vi) Arranging Custody; or
(vii) Insurance Broking; or
(viii) Insurance Management; or
(ix) Effecting Contracts of Insurance or
Carrying out Contracts of Insurance:
(A) where the applicant is intending
to carry on business as a Captive
Insurer; or
(B) where the Authorised Firm is
carrying on business as a Captive
Insurer; or
(x) Managing a Profit Sharing Investment Account; or
(xi) Providing Trust Services.
$10,000
(d) Operating an Alternative Trading System.
$30,000
(e)
Effecting Contracts of Insurance or Carrying out
Contracts of Insurance:
(i) where the applicant is not also intending
to carry on business as a Captive
Insurer; or
(ii) where the Authorised Firm is not carrying
on business as a Captive Insurer.
