FinMin Amends Securities Contracts Regulation: Broker Investments Not Business Unless Client Funds or Liabilities Involved

The Ministry of Finance has issued amendments to the regulations governing stockbrokers, clarifying the circumstances under which a stockbroker's own investments would be considered "business" under securities laws. The amendment specifies that a broker's investments will not be classified as business activities unless these investments are directly linked to the broker's liabilities towards their clients or involve the handling of client funds. This clarification is intended to ease the compliance burden on stockbrokers by providing a clearer definition of what constitutes their "business" for regulatory purposes, thereby distinguishing between their own investment activities and their role as intermediaries for clients.