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Questions and Answers
Which requirement is essential for the administration of a collective investment scheme?
Which requirement is essential for the administration of a collective investment scheme?
What must a license application include according to market operator requirements?
What must a license application include according to market operator requirements?
Which of the following actions can lead to the revocation of a capital markets services licence?
Which of the following actions can lead to the revocation of a capital markets services licence?
What is a key requirement concerning the use of clients' money in a collective investment scheme?
What is a key requirement concerning the use of clients' money in a collective investment scheme?
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In which context is the requirement for a prospectus particularly emphasized?
In which context is the requirement for a prospectus particularly emphasized?
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What aspect does supervision of market operators most heavily focus on?
What aspect does supervision of market operators most heavily focus on?
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Which term refers to the delegation of services within collective investment schemes?
Which term refers to the delegation of services within collective investment schemes?
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Which document is crucial for informing potential investors about a collective investment scheme?
Which document is crucial for informing potential investors about a collective investment scheme?
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What is required to be included in an advertisement related to an offering or admission to trading?
What is required to be included in an advertisement related to an offering or admission to trading?
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Which of the following statements about advertisements is true?
Which of the following statements about advertisements is true?
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What is the purpose of the bold statement in a written advertisement?
What is the purpose of the bold statement in a written advertisement?
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Which of the following types of communication qualifies as an advertisement under the regulations?
Which of the following types of communication qualifies as an advertisement under the regulations?
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How should the information in an advertisement compare to the information in a prospectus?
How should the information in an advertisement compare to the information in a prospectus?
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What is the Authority required to ensure about an applicant before granting a licence for investment services?
What is the Authority required to ensure about an applicant before granting a licence for investment services?
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What is explicitly stated in the regulations regarding how advertisements should be recognized?
What is explicitly stated in the regulations regarding how advertisements should be recognized?
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In assessing an applicant's risks, which of the following factors is considered?
In assessing an applicant's risks, which of the following factors is considered?
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What is a potential consequence of not following advertisement regulations as described?
What is a potential consequence of not following advertisement regulations as described?
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Which mode of advertisement is NOT mentioned in the regulations?
Which mode of advertisement is NOT mentioned in the regulations?
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Which factor is NOT explicitly mentioned as part of determining an applicant's fitness and propriety?
Which factor is NOT explicitly mentioned as part of determining an applicant's fitness and propriety?
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What may the Authority consider regarding the applicant's home state regulations?
What may the Authority consider regarding the applicant's home state regulations?
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In terms of advertising, what must be avoided to ensure the integrity of the offering?
In terms of advertising, what must be avoided to ensure the integrity of the offering?
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What constitutes an 'advertisement' according to the stated regulations?
What constitutes an 'advertisement' according to the stated regulations?
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Which of the following actions can the Authority take when considering a licence application?
Which of the following actions can the Authority take when considering a licence application?
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What is the primary requirement for reporting entities regarding the release of price sensitive information?
What is the primary requirement for reporting entities regarding the release of price sensitive information?
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Under what condition can a reporting entity delay disclosing price sensitive information?
Under what condition can a reporting entity delay disclosing price sensitive information?
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What must a reporting entity do when there is a risk of information leaking before a full announcement?
What must a reporting entity do when there is a risk of information leaking before a full announcement?
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Which type of price sensitive information does not require a new announcement?
Which type of price sensitive information does not require a new announcement?
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What responsibilities do reporting entities have concerning the accuracy of price sensitive information?
What responsibilities do reporting entities have concerning the accuracy of price sensitive information?
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What impact does the requirement for fee access to information have on a reporting entity's obligations?
What impact does the requirement for fee access to information have on a reporting entity's obligations?
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What constitutes price sensitive information for reporting entities?
What constitutes price sensitive information for reporting entities?
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What should reporting entities do if they have price sensitive information but are not yet ready for a full announcement?
What should reporting entities do if they have price sensitive information but are not yet ready for a full announcement?
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How does the obligation of announcing price sensitive information relate to general knowledge within the market?
How does the obligation of announcing price sensitive information relate to general knowledge within the market?
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What obligation does a reporting entity breach by providing price sensitive information on a selective basis?
What obligation does a reporting entity breach by providing price sensitive information on a selective basis?
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When must a reporting entity correct inaccurate or misleading information in a market announcement?
When must a reporting entity correct inaccurate or misleading information in a market announcement?
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What must a reporting entity do if it has securities listed in multiple jurisdictions?
What must a reporting entity do if it has securities listed in multiple jurisdictions?
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What type of license permits an individual to carry out one or more regulated activities on behalf of another?
What type of license permits an individual to carry out one or more regulated activities on behalf of another?
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Which of the following activities can a holder of a representative's license perform?
Which of the following activities can a holder of a representative's license perform?
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What is the requirement for a reporting entity regarding delays in reporting to the Authority?
What is the requirement for a reporting entity regarding delays in reporting to the Authority?
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What type of license is required to conduct business as a capital markets service provider?
What type of license is required to conduct business as a capital markets service provider?
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If a reporting entity realizes it has disclosed information inadequately, what must it do?
If a reporting entity realizes it has disclosed information inadequately, what must it do?
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What action must a reporting entity take if the disclosure requirements are stricter in another jurisdiction?
What action must a reporting entity take if the disclosure requirements are stricter in another jurisdiction?
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What happens when a reporting entity fails to meet its continuing obligations of disclosure?
What happens when a reporting entity fails to meet its continuing obligations of disclosure?
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Study Notes
Capital Markets Services Licences
- Capital Markets Services Licence allows a person to carry out business in one or more regulated activities for a fee.
- Representative's Licence allows an individual to carry out one or more regulated activities on behalf of a company that holds a capital markets services licence.
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Licence Requirements
- Applicant must satisfy requirements in the Order (Brunei Darussalam's legislation) and relevant Regulations.
- Applicant must be "fit and proper" for the licence - This includes assessment of the systems that they operate or plan to operate, their organisational structure, and any potential risk to Brunej Darussalam's reputation or financial system.
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Licence Scope
- The Authority may grant a licence to a company to operate a securities exchange or a clearing house, if they satisfy the relevant requirements, including maintaining an official list of securities in a proper and independent manner.
- The Authority may also consider any detrimental effect on the integrity or reputation of Brunei Darussalam when evaluating an applicant for a licence.
Reporting Entities and Price Sensitive Information
- Reporting Entities are required to disseminate unreleased price sensitive information to the market without delay.
- Price Sensitive Information is any information relating to a reporting entity that is not publicly known and that could significantly affect the value of a reporting entity's securities.
- Examples of Price Sensitive Information include: material changes to the financial condition, earnings, or operations of the reporting entity.
- Dissemination of Price Sensitive Information should be done without delay and ensure that the information is accurate, not misleading, and detailed enough for investors to make informed investment decisions.
Prospectus of Collective Investment Schemes
- Prospectus is required to be published for all collective investment schemes, including foreign collective investment schemes. Investors should not subscribe for any securities based on an advertisement without referring to the prospectus.
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Types of Prospectus
- Private Collective Investment Scheme: This type does not require a public prospectus, but the information provided should be accurate and not misleading.
- Recognised Collective Investment Scheme: This type is regulated by the Authority and requires a prospectus for public investors.
- Foreign Property Collective Investment Scheme: This type requires a prospectus that outlines the investment's objectives, risks, and management structure.
Other Key Points
- Anti-Money Laundering Requirements must be adhered to by all collective investment schemes.
- Record Keeping is a crucial part of compliance for all market operators, including reporting entities and collective investment schemes. This includes financial transactions and price sensitive information.
- Written Constitution is required for all collective investment schemes.
- Advertisement for Collective Investment Schemes must be approved by a licensed person.
- The Authority may grant additional directions to market operators.
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Description
This quiz covers the essential aspects of Capital Markets Services Licences, including the scope, requirements, and the roles of different licences. You'll learn about the compliance obligations and the implications for financial entities in Brunei Darussalam. Test your knowledge on how these licences operate within regulated activities and their significance in maintaining market integrity.