Securities Markets Order, 2013 · As enacted · Part IV · Self-Regulating Organisations
Section 109
Official textFrom Attorney General's Chambers, unchanged
(1)
The Authority shall require the person who effectively direct the business and the operations of the self-regulating organisation to be of sufficiently good repute and sufficiently experienced as to ensure the sound and prudent management and operation of the services it provides.
The Authority shall require the operator of a self-regulating organisation to inform the Authority of the identity and any other subsequent changes of the persons who effectively direct the business and his operations before such changes are implemented.
operator
"operator", of a collective investment' scheme, which is an investment company, means- {a) the licensed corporate director of that company which is the management company; {b) in relation to a unit trust, the management company; and {c) in relation to a partnership, the general partner.
The Authority shall refuse to approve any proposed changes if it appears to the Authority that there are grounds for believing that the person or persons proposed to direct the business and his operations pose a material threat to the sound and prudent management and qperation of the self-regulating organisation.
The operator of a self-regulating organisation must have the following organisational arrangements in place -
{a)
to identify clearly and manage the potential adverse consequences of any conflict of interest;
{b)
to be adequately equipped to manage the risks to which he is exposed, to implement appropriate arrangements and systems to identify all significant risks to his operation, and to put in place effective measures to mitigate those risks;
{c)
for the sound management of the technical operations of his systems, including the establishment of effective contingency arrangements to cope with risks of systems disruptions;
transparent and non-discretionary regulations and procedures that provide for fair and orderly provision of the services to his members;
at the time of recognition and on an ongoing basis, sufficient financial resources to facilitate his orderly functioning, having regard to the nature and extent of the services provided and the range and degree of the risks to which he is exposed.
Grant and refusal of recognition.
Terms defined in s 207
operator
Defined · s 207"operator", of a collective investment' scheme, which is an investment company, means- {a) the licensed corporate director of that company which is the management company; {b) in relation to a unit trust, the management company; and {c) in relation to a partnership, the general partner.
Part X
Part X.
Part VI
Public Company Statements and Reporting Requirements
Part VII
Capital Markets Services Licence and Representative'S Licence
Part VIII
Books, Audit and Client'S Assets
Part IX
Part X
Intervention Powers of Authority
Part XI
Complaints Committee and Investor Compensation Scheme
Part XII
Financial Markets Services Panel
Part XIII