Saint Lucia Broker Dealer License

Introduction

The Securities Act, 2001, provides the legal framework for the provision of the Broker Dealer Services in Saint Lucia regulated by the Eastern Caribbean Securities Regulatory Commission

Permitted Activities

As per the Act, a Broker Dealer means a person carrying on business of dealing in securities whether acting as principal or agent by way of business:

• Makes or offers to make an agreement with another person to enter into or offer to enter into an agreement, for or with a view to acquiring, disposing of, subscribing for or underwriting securities or in any way effects or causes to effect a securities transaction;
• Manages a portfolio of securities for another person on terms under which the first mentioned person may hold property of the other person.

Legal Requirements

Categories

Entity Requirements

The applicant must be a company which 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.

Director’s Requirements

The license will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.

Shareholder requirements

• The investment dealer will need at least one shareholder.
• Corporate shareholding is allowed and 100% foreign ownership is permitted.

Compliance Officer

The License must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.

Licensed Principle

The Applicant must employ at least one individual who is licensed as a principal. The Principle must:
a) Have successfully completed the ECSM Certification Examination Program.
b) Have sufficient educational or other qualifications or experience;
c) Have sufficient authority within the company;
d) Be a fit and proper person, to supervise the business for which the company that has nominated him is licensed or is applying to be licensed;

Authorized Representative

The Applicant must employ at least one individual who is licensed as a representative. The representative must:
a) Have successfully completed the ECSM Certification Examination Program.
b) Have sufficient educational or other qualifications or experience;
c) Be a fit and proper person to be licensed as a representative;

Local Office

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.

Auditor

The License, within one month after becoming licensed, shall appoint an external auditor who is acceptable to the Commission

Insurance

The applicant must have indemnity insurance coverage or a fidelity bond acceptable to the ECSRC.

Minimum Capital Requirements

In order to obtain a Broker Dealer license in Panama you need to have a registered capital of USD150,000.

Ongoing Obligations

• 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
• Filing of Audited Accounts: The licensee shall for the financial year beginning on the day on which it commences to carry on securities business; and for each subsequent year submit to the Commission, within ninety days after the end of the financial year, audited financial statements prepared in accordance with international accounting standards, and which contain such additional information as may be prescribed.
• The License must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.