Any entities either local or foreign whom wanting to carry out any regulated activities within the PNGPNG Papua New Guinea’s Capital Market must be licensed by the Commission under Part III, Division 1 of the Capital Market Act 2015.

Individuals wanting to get “Representative Licenses” to become representative to a trading organization must be licensed by the Commission under same provision of the Act.

Regulated Capital Market activities that must be licensed by the Commission are;

  1. Stock and Derivative Exchange
  2. Stock Brokerage
  3. Clearing House
  4. Advisory Services
  5. Fund Management
  6. Trustee Services
  7. Managed Investment Schemes and
  8. Stock Registry Services

Who needs to apply?

Fully complied Entities registered under the Companies Act 1997 and other Laws with zero bad commercial practice. Those entities must be well vested with PNG and global capital markets. The directors and management must be fit and proper person with no criminal records.

What are the admission criteria?

Different regulated business activity under the Capital Market Act 2015 as its own assessment guidelines. However, here are the generic applicable requirements that SCPNGSCPNG Securities Commission of Papua New Guinea look at;

  • Fitness and proper person test on applicants, shareholders, directors and management.
  • Full of commercial regulatory compliance on all Laws in doing business in PNG.
  • Track record and management expertise of the applicant and its parent company or major shareholders.
  • Ability to meet the minimum capital requirements prescribed under the CMA 2015CMA 2015 Capital Market Act 2015 to operate.
  • Strength of internal risk management and compliance systems.
  • Business model/ plans and projections and the associated risks.
  • Ability to meet regulatory and fiduciary requirements when arise.

Specific requirements for each regulated business activity can be download here

How do I apply for a Capital Market license?

You can apply online using the portal or fill the form manually and submit the form together with all required documentation with their specific fee to SCPNG office in person.

How much is the application fee and how do I make payment?

Fees on each specific regulated activities under the Capital Market Act 2015 are on schedule on the Regulation. Full payment of schedule is required to pay when lodging application.

What is the validity of the CM License?

All Licenses for each regulated activities under the Capital Market Act 2015 are for one year term and required renewal with same fee.

Any listed entity holding Capital Market License to operate whom did not renew their licenses will be removed from listing from the PNGXPNGX PNG National Stock Exchange Listings.

However, a license may be removed by the Commission on grounds that;

  • The licensee stops conducting all the regulated activities on the license,
  • The license is revoked by Commission through court orders, involvement in any fraud cases or other reasons deemed appropriated to SCPNG.
  • Non-Renewal of the License by the Commission after six months of expiry the Commission removes it from the registry.