Liberalisation Of Equity Holdings In Capital Market Intermediaries

ANNOUNCEMENT

The Securities Commission has amended the equity requirements for stockbroking companies which are not investment banks (Universal Broker, 1+1 Brokers and Standalone Brokers). Changes to the Licensing Handbook have been made as a consequence to the liberalisation which has come into effect on 5 December 2011.

Please refer to the Table 1 below for the new shareholding composition requirements, effective immediately.

Dealing in Securities	General requirement
Investment Banks	Minimum of 30% local shareholding
Stockbrokers which are not Investment Banks(Universal Broker, 1+1 Brokers and Standalone Brokers)	No specific shareholding requirement
Special Scheme Brokers	No specific shareholding requirement
Dealing in Derivatives	No specific shareholding requirement
Fund Management	No specific shareholding requirement
Investment Advice	No specific shareholding requirement
Advising on Corporate Finance	No specific shareholding requirement
Financial Planning	No specific shareholding requirement

Table 1 above supersedes the current Table 1 of Chapter 4 [4.03(1)] of the Licensing Handbook.

5 DECEMBER 2011