Requirements for Broker Dealer Licence
The Securities Act requires that an entity satisfy the following conditions to qualify for a broker-dealer licence:
Documents to be Submitted
- The applicant must be a company. Company includes a company, limited partnerships, unit trust or other business entity, which is incorporated, registered or otherwise established under the laws of a member territory of the Eastern Caribbean Currency Union.
- The applicant must employ at least two persons licensed by the ECSRC, one of which must be licensed as a principal and the other as a representative. Both individuals must have successfully completed the ECSM Certification Examination Program. The applications for the proposed principal and representative may be submitted along with the application for the broker-dealer licence.
- The applicant must have paid-up capital of no less than One Million Eastern Caribbean Dollars (EC$1.0 million).
- The applicant must have indemnity insurance coverage or a fidelity bond acceptable to the ECSRC.
- The applicant must be a company of good reputation. The directors and officers of the applicant must also be persons of good character and reputation. The directors and staff of the applicant should have the requisite education, qualifications and experience to perform the services for which the licence is required.
- The applicant must have sufficient financial resources to undertake the services for which the licence is required.
- The applicant must have premises acceptable to the ECSRC. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.
- As part of the licensing process, physical on-site due diligence examinations of the applicant’s specified business premises may be conducted by the ECSRC. The costs of which will be borne by the applicant. Physical onsite due diligence examinations may include examinations during: 1) the application / pre-licensing phase; and 2) post licensing. The costs associated with the physical on-site due diligence examinations are separate from the fees prescribed under the Securities (Licences and Fees) Regulations.
- The ECSRC on approval of an application for a licence, shall grant a licence to the applicant on payment by the applicant of a licence fee of Three Thousand Eastern Caribbean Dollars (EC$3,000.00).
- Licences are to be renewed annually on 1 April. On application for renewal of a licence, the ECSRC, if satisfied that the applicant is a licensee of good standing, may grant the renewal on payment by the applicant of the annual renewal licence fee of Two Thousand Eastern Caribbean Dollars (EC$2,000.00).
A duly completed application form (typewritten) for a broker dealer licence (Form 1) shall be accompanied by the following documents (or copies):
- A non-refundable application fee of One Thousand Eastern Caribbean Dollars (EC$1,000.00)
- A certified copy of the applicant’s Certificate of incorporation/continuance.
- Certified copies of the applicant’s Memorandum and/or Articles of Association and/or Bylaws.
- Audited financial statements for the applicant for the last three financial years or from incorporation, whichever is shorter. If the applicant is a start-up company, provide an audited opening balance sheet and projected financial statements for at least three years.
- An organisational chart for the applicant.
- A manual detailing the applicant’s internal operating systems and procedures (general operations manual).
- Register of Interest in Securities – completed copy of FORM 5.
- Certified documentary evidence (Certificate of Insurance and insurance policy) that professional indemnity insurance coverage has been affected and is maintained.
Please refer to the General Application Procedures for more information on how to apply.