Any entities either local or foreign whom wanting to carry out any regulated activities within 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;
Stock and Derivative Exchange
Stock Brokerage
Clearing House
Advisory Services
Fund Management
Trustee Services
Managed Investment Schemes and
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 has its own assessment guidelines. However, here are the generic applicable requirements that SCPNGSCPNG Securities Commission of Papua New Guinea looks 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 they arise.
Specific requirements for each regulated business activity can be downloaded 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 activity 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 activity under the Capital Market Act 2015 are for a one-year term and require renewal with the same fee.
Any listed entity holding a Capital Market License to operate who 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 the Commission through court orders, involvement in any fraud cases or other reasons deemed appropriate to SCPNG.
Non-Renewal of the License by the Commission after six months of expiry, the Commission removes it from the registry.