Brokerage Entities is responsible for the licensing and supervision of entities providing investment services.  The regulated entities would be licensed to provide investment services in relation to those financial instruments (for example shares, and bonds) listed in their license.

Brokerage Entities will only issue an investment services license if it is satisfied that the applicant is a fit and proper person to provide the investment service concerned and that the applicant will comply with and observe at all times all the rules applicable to the license holder.

The concept of fit and proper is a fundamental regulatory concept. This is a rigorous test that requires senior staff and potential and existing licensees to demonstrate competence, integrity, and solvency i.e. they have sufficient capital, in all their dealings. This concept needs to be practiced both at licensing stage and on an ongoing basis thereafter.