ABSTRACT
When a securities industry ‘player’, such as a stockbroker, first applied for membership of a SRO,206 it will have been investigated and will only have been admitted into membership207 on being found to be ‘fit and proper’ to engage in the investment business proposed. Once so admitted, and thus authorised to engage in investment business, members of the SFA must comply with the Rules of the SFA. These
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contain provisions governing the relationship between the member firm and the SFA including the need for SFA members to have and to maintain adequate financial resources. They must also notify the SFA208 on the occurrence of certain specified circumstances which include financial difficulties; changes in significant personnel and in those persons concerned with the investment business conducted by the firm; and also where changes are proposed to those persons ‘controlling’ the firm. There are also detailed provisions209 governing the relationship between SFA members and their customers.
