Application
and inter- pretation of Pari IX.
Accounts to
be kept by
dealers.
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(4) An authority conferred under subsection (3) shall specify the period for which it is current, but shall not in any event, sub- ject to subsection (5). remain in force for a period of more than 12 months.
(5) An authority conferred under subsection (3) may be renewed in writing for one or more further periods not exceeding 12 months at any one time.
(6) Any dealer who, without lawful authority or reason- able excuse, contravenes subsection (1) or subsection (3) shall be guilty of an offence.
(7) Any person guilty of an offence under subsection (6) shall be liable on conviction-
(a) in the case of a contravention of subsection (1), to a fine
of $2,000; and
(b) in the case of a contravention of subsection (3), to a fine
of $20,000 and to imprisonment for 2 years.
PART IX
ACCOUNTS AND AUDIT
82. (1) This Part applies to the business of a registered dealer and every reference to the term "dealer" shall be con- strued accordingly.
(2) In this Part, unless the context otherwise requires, any reference to the books, accounts, records, securities, trust accounts, or business of, or in relation 10, a dealer who carries on business in partnership shall be read and construed as a reference to the books, accounts, records, securities. Trust accounts, or business (as the case requires) of or in relation to the partnership.
(3) The Governor in Council may, by order published in the Gazette, apply all or any of the provisions of this Part, with or without modifications, to registered investment advisers.
83. (1) A dealer shall-
(a) cause to be kept such accounting and other records as will sufficiently explain the transactions, and reflect the financial position, of the business of dealing in securities carried on by him, and will enable true and fair profit and loss accounts and balance sheets to be prepared from time to time: and
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(b) cause those records to be kept in such a manner as will enable them to be conveniently and properly audited.
(2) The records referred to in subsection (1) shall be kept- (a) in writing in the English language; or
(b) in such a manner as to enable them to be readily accessible and readily converted into written form in the English language.
(3) Without affecting the generality of subsection (1). a dealer shall cause records to be kept-
(a) in sufficient detail to show particulars of
(i) all money received and paid by the dealer, in- cluding money paid to, and disbursed from, a trust account;
(i) all purchases and sales of securities made by the dealer, the charges and credits arising from them, and the names of the buyer and seller, respectively, of each of those securities;
(ii) all income received from commissions, interest. and other sources, and all expenses, commissions, and interest paid by the dealer:
(iv) all the assets and liabilities (including contingent liabilities) of the dealer;
(v) all securities that are the property of the dealer. showing by whom the security documents are held and, where they are held by some other person, whether or not they are held as security against loans or advances;
(vi) all securities that are not the property of the dealer and for which the dealer or any nominee con- trolled by the dealer is accountable, showing by whom, and for whom, the security documents are held dis- tinguishing those which they are held for safe custody, and those which are deposited with a third party as security for loans or advances made to the dealer; and
(vii) all underwriting and sub-underwriting transac- lions entered into by the dealer; and
(b) containing copies of acknowledgements of the receipt of securities received by the dealer from clients for sale or safe custody clearly showing the name or names in which the particular securities are registered.