Turks and Caicos Investment Dealer License
An Investment Dealer as defined in the Investment Dealers (Licensing) Ordinance 2001 is a person (meaning an individual or entity) who:
- trades on behalf of customers;
- act as a fund manager;
- solicits subscriptions for new issues of Investments; and
- offers advice about investments by way of a business.
Investments under the IDLO include:
- Commodities trading;
- corporate bonds;
- government and local authority bonds;
- units in collective investment schemes;
- warrants, covered warrants, options, futures, forward contracts, contracts for differences, swaps, and spread bets and any similar securities or derivatives; or synthetic products which replicate or substantially replicate any of the foregoing.
Categories of Regulated Investment Dealers
The IDLO in Section 8 provides for the licensing of a company or partners in a partnership to be licenced as:
- Investment advisers (“adviser’s licence”);
- Investment dealers acting in an execution only capacity (“execution only licence”);
- Investment dealers (“full licence”). Holders of the full licence may; offer advice, trade on behalf of customers, act as fund manager (see below) and solicit subscriptions for new issues of investments; and
- Fund managers who trade in investments on behalf of mutual funds (“fund managers licence”).
|Entity Requirements||The entity making the application is a Turks and Caicos:
|Director’s Requirements||Every mutual funds administrator which is a company shall provide in its Articles of Association that there be not less than two directors at any time and further shall ensure that there are two directors at all times..|
|Shareholder requirements||Every mutual funds administrator will need at least one shareholder.|
|Compliance Officer||The Licensee 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.|
|Professional Indemnity Insurance||A licensed investment dealer shall maintain with a recognized insurer, professional indemnity insurance in the amount of not less than $2,000,000 to cover any one loss including any loss due to theft by an employee or negligence by a director.|
|Local Office||The applicant must have premises in the island acceptable to the commission prior to operating the business. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.|
|A licensed investment dealer shall maintain in liquid assets, a minimum capital of $250,000 or 2.5% (whichever is higher) of investments and money held on behalf of clients.|
A licensed investment dealer shall;
- Be able to meet its financial obligations as they fall due;
- Keep the money and investments of its clients in such a manner as may be prescribed;
- Effect professional indemnity insurance in such a manner, for such amount, for such liabilities and with such insurer as may be prescribed;
- Obtain the prior approval of the Commission for a change in directors, beneficial owners, managers and shareholders or partners;
- Let the Commission know of a change requiring an amendment to its application for a licence or of a change to its structure or method of working which affects the conditions of its licence;
- Maintain the ability to effect customer instructions and settle transactions, in a timely manner;
- Submit a return in a prescribed form at prescribed times to the Commission; and
- Maintain the amount of capital calculated on the basis of the factors and formula prescribed under section 6.
- A licensed investment dealer shall, not later than 31st March in each year submit to the Commission;
- A Certificate of Solvency and Annual Compliance Certificate in the prescribed form and signed by a director and a senior executive officer responsible for its investment business confirming that the investment dealer has complied with all of the statutory requirements or indicating any failure to do so; and
- A certificate of an approved auditor certifying that the investment dealer has at all times complied with all of the statutory requirements.
About Valsen Fiduciaries
Valsen Fiduciaries is a licensed independent global service provider of a broad range of fiduciary, administrative, legal, corporate secretarial and support services.
- Company formations and Administration
- Assistance with Bank Account opening
- Collective Investment Setup and Administration
- Intellectual Property Registrations and Maintenance.
- Trusts and Foundations setup and administration
- Online Payment Gateway Solutions
- Banking Licenses and PSP, E-Money, E- Wallet Licenses
- Yacht and aircraft registrations.
- Cryptocurrency Solutions (ICO, STO, Crypto Exchanges etc)
The Valsen Advantage
- We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances. We have extensive knowledge of a wide range of securities dealer licenses in all major jurisdictions.
- Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
- We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
- We have a full in-house compliance support for all compliance requirements with the regulator and service providers
Our Contact Details
OR Contact us on:
- Tel: +248 4321018
- WhatsApp: +248 2525217
- Skype: vf-international.com
- Email: [email protected]