Organized securities activities
Article 63
No person may engage in any of the following activities without obtaining a license from the Authority stating the activity or activities authorized: 2- Investment advisor or his representative. 3- Investment Portfolio Manager. 4- Director of a collective investment system. 5- Investment trustee. 6. Any person who participates in any other activity deemed to be organized by the Authority in accordance with the purposes of this Law. One or more legal persons may be licensed to carry out two or more of these activities. The Executive Regulation of the Law shall determine the conditions and controls for granting such licenses and the standards of practicing the activity and regulations thereof.
Article 64
No person may act as a delegate or claim to be a representative of a licensed person without the approval and licensing of the Authority.
Article 65
The Authority may request persons licensed in the securities activity to submit periodic reports on all their activities, including an annual report on the audited financial statements. All of their records shall be subject to scrutiny by the Authority and may take copies of such records or request any of them to provide copies thereof.
Article 66
The person licensed to work in the management of securities activity shall abide by the regulations laid down by the Authority, and shall be determined by the Executive Regulation, and in particular the following: 1. Separate commercial transactions in his securities from all other business. 2. Maintaining sufficient capital. Not to transfer or mismanage clients’ funds or securities for their own use. Not to resort to a high degree of credit for the purpose of obtaining or maintaining securities. 5. Have reasonable justification for believing that the securities he recommends to a client are deemed appropriate for that customer. Failure to provide promises to the customer with a certain return or guarantee the client not to lose. 7. Seeking to achieve the best performance for the benefit of the client. 8 – not to collect high commissions or offers high discounts in transactions. 9. Not to engage in excessive buying or selling in a client’s account. 10 – to provide customers with documents and statements of accounts for their transactions. 11. Prepare and maintain regular books and records. 12. Appoint one of his directors responsible for the implementation of legal obligations. 13. Have written controls, regulations and rules to control work, including measures to prevent misuse of internal information and procedures for detecting and preventing money laundering.
Article 67
The Authority may refuse, suspend or revoke a license or restrict the activity of any person licensed to work in the Department of Securities Activities, or any related person, if it is proved that he has committed one of the following matters: 1. When submitting his license application or omitting any other information that must be provided to the Authority. 2. Failure to meet the criteria applicable under the provisions of this Chapter or any regulation or regulation issued accordingly. 3. Violates any provision, rule, regulation or regulation issued pursuant to this Law, or any other securities law, rule or regulation of another State. Negligent in monitoring one of his followers to prevent him from violating the provisions of this law or its executive regulations.
