Covered lines of business

Covered investment services and supplementary investment services include [Cf. §81 (1) a) – c) and §81 (2) a) – b) and g) h) of the CMA]:

  • Commission brokerage;
  • Trading;
  • Personal management of individual portfolios upon an order received from the investor (portfolio management);
  • Keeping securities in custody and managing custody accounts;
  • Managing securities deposited into custody;
  • Managing customer accounts;
  • Managing securities accounts.

If a business organisation applies to the HFSA for a license to engage in one or more of the activities listed above, it must join the IPF. The organisation must attach a certificate of application for IPF membership and of the payment of the initial contribution to the IPF for membership to its application for an operating license. Whenever an IPF member seeks to acquire a license for a new line of business, the proof of IPF membership must be attached to the application. [Cf. §101(2), §230(6), §242/A(5) and section 1(1) of Annex 10 of the CMA.]