Licensed & Approved Entities

Licensing Overview

Any entity, whether local or foreign, that intends to carry out regulated activities within Papua New Guinea’s capital market must obtain a licence from the Securities Commission of Papua New Guinea (SCPNGSCPNG Securities Commission of Papua New Guinea) under Part III, Division 1 of the Capital Market Act 2015.
Individuals seeking to obtain Representative Licences in order to act on behalf of a trading organisation must also be licensed by the Commission under the same provision of the Act.
Regulated Capital Market Activities
The following capital market activities require licensing by the Commission:
  1. Stock and Derivative Exchange
  2. Stock Brokerage
  3. Clearing House
  4. Advisory Services
  5. Fund Management
  6. Trustee Services
  7. Managed Investment Schemes
  8. Stock Registry Services
Who Needs to Apply?
Entities that are fully compliant and registered under the Companies Act 1997 and other applicable laws in Papua New Guinea may apply. Applicants must demonstrate sound commercial practices and familiarity with both local and global capital markets.
The directors and management of the entity must also satisfy the fit and proper person requirements and must not have any criminal records.
What Are the Admission Criteria?
Each regulated activity under the Capital Market Act 2015 has its own specific assessment guidelines. However, the following general requirements are considered by SCPNG:
  • Fit and proper person assessment of applicants, shareholders, directors, and management.
  • Full regulatory and commercial compliance with all applicable laws when conducting business in Papua New Guinea.
  • Track record and management expertise of the applicant, including its parent company or major shareholders.
  • Ability to meet the minimum capital requirements prescribed under the Capital Market Act 2015.
  • Strength of internal risk management and compliance systems.
  • Business model, plans, projections, and associated risk management strategies.
  • Ability to meet regulatory and fiduciary obligations as they arise.
Specific requirements for each regulated business activity can be downloaded here.
How Do I Apply for a Capital Market Licence?
Applications may be submitted online through the licensing portal, or by completing a manual application form and submitting it together with all required documentation and the relevant application fee to the SCPNG office.
Application Fees and Payment
Fees for each regulated activity under the Capital Market Act 2015 are specified in the applicable regulations. The full prescribed fee must be paid when lodging the application.
Validity of a Capital Market Licence
All licences issued under the Capital Market Act 2015 are valid for a period of one year and must be renewed annually upon payment of the prescribed renewal fee.
Any listed entity holding a capital market licence that fails to renew its licence may be removed from the PNGXPNGX PNG National Stock Exchange Listings.
Licence Revocation or Removal
A licence may also be revoked or removed by the Commission under the following circumstances:
  • The licensee ceases to conduct the regulated activities covered under the licence.
  • The licence is revoked by the Commission through court orders, involvement in fraudulent activities, or other reasons deemed appropriate by SCPNG.
  • Failure to renew the licence. If a licence remains unrenewed for more than six months after expiry, the Commission may remove it from the registry.