STEP ONE

Section 31 of the SIA provides that no person shall carry on business as a securities exchange or clearing agency or carry on activities as an association of securities companies and intermediaries unless registered as a self-regulatory organisation under the SIA. Section 32 of the SIA provides that a person may register as a Self-Regulatory Organisation (SRO) if it:

1. Proposes to engage in the securities business;
2. Is a body corporate;
3. Is incorporated in Guyana or incorporated in any other State and registered in Guyana; and
4. Has a body of rules for the governance of its members. In establishing the body of rules to govern its members, the Applicant must meet the minimum criteria as set out in Sections 34 through 38 of the SIA.

STEP TWO

On submission of the application to the Council, the Applicant:

1. Must provide proof of a minimum paid up capital as prescribed by the Council.
2. Must provide proof of an indemnity insurance policy as required under Section 55 of the SIA.
3. Must pay the prescribed fee as prescribed by the Council. See Registration Fees Second Schedule of the Securities Industry (Registration of Market Participations) Regulations 2002.
4. Must submit Fit and Proper Assessment(s) as required under Section 47 and 47A of the SIA. See Fit and Proper Assessment

STEP THREE

On receipt of the application with accompany documentation, a publication is made in the Gazette and in a daily newspaper circulating in Guyana, on three (3) consecutive Saturdays, a notice inviting any interested person to submit written comments on the application by the Council and the cost of the publication shall be borne by the Applicant pursuant to Section 33 of the SIA.

Subject to approval of the Minister, the Council may then grant an application for registration as an SRO. The Council holds the right to refuse an application for registration where the Applicant is not organised in a manner or does not have the capacity and resources that enable it to comply with this Act and enforce compliance with its rules or where the rules of the Applicant do not comply with Section 34 of the SIA.

In considering whether to grant an application, the Council considers the following:

1. Prices, fees or rates charged by members of the applicant for services;
2. Conditions of entry into the securities market through membership in the applicant or otherwise;
3. The structure or form of a member or participant;
4. The quantity or quality of services furnished by a member or participant;
5. Any type of restraint on competition.

The Council also has the power to require the change/amendment of the proposed body of rules governing the Applicant’s members to ensure conformity with the SIA.

Accompanying Documents for registering a self-regulatory organisation:

1. Cover Letter
2. Annexes as required in Application Forms and Fit and Proper Assessment
3. Certified copy of Articles of Incorporation and By-Laws
4. Certified copy of Certificate of Incorporation
5. Audited accounts
6. Certified copy of rule book
7. Business Plan
8. Operations Manual (detailing Internal Controls)
9. Accounts of Member companies detailing their operations
10. Auditors report of audit reports of members’ auditors
11. Certified Copy of Board Paper (referred to in Application)
12. Sample Order Book
13. Sample Publication of Order
14. Sample Holding Order
15. Sample Market Contract
16. Sample Conditions of Trade
17. Sample Commingling of Funds