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  • Arranging Deals in Financial Instruments

    • LR-1.3.40

      Arranging deals in financial instruments means making arrangements with a view to another person, whether as principal or agent, buying, selling, or subscribing for, or underwriting deals in, financial instruments.

      October 2007

    • LR-1.3.41

      A person does not carry on an activity specified in Rule LR-1.3.40 if the arrangement does not bring about the transaction to which the arrangement relates.

      October 2007

    • LR-1.3.42

      A person does not carry on an activity specified in Rule LR-1.3.40 if a person's activities are limited solely to introducing clients to licensees.

      October 2007

    • LR-1.3.43

      The exclusion in Rule LR-1.3.42 does not apply if the agent receives from any person, other than the client, any pecuniary reward or other advantage, which he does not account to the client, arising out of his entering into the transaction. Thus, if A receives a commission from B for arranging credit or deals in investment for C, the exclusion in Rule LR-1.3.42 does not apply.

      October 2007

    • LR-1.3.44

      A person does not carry on an activity specified in Rule LR-1.3.40 merely by providing the means of communication between two parties to a transaction.

      October 2007

    • LR-1.3.45

      A person does not carry on an activity specified in Rule LR-1.3.40 if they operate an exchange, duly recognised and authorised by the CBB.

      October 2007

    • LR-1.3.46

      Negotiating terms for an investment on behalf of a client is an example of an activity which may be regarded as an activity of the kind specified in Rule LR-1.3.40.

      October 2007

    • LR-1.3.47

      The following are examples of activities, which when taken in isolation, are unlikely to be regarded as an activity of the kind specified in Rule LR-1.3.40:

      (a) Appointing professional advisers;
      (b) Preparing a prospectus/business plan;
      (c) Identifying potential sources of funding;
      (d) Assisting investors/subscribers/borrowers to complete and submit application forms; or
      (e) Receiving application forms for processing/checking and/or onward transmission.
      Amended: October 2010
      October 2007

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