Section 23
( 1)
of Securities Markets Order, 2013
No person may hold himself out as carrying on or purporting to carry on
Islamic investment business in Brunei Darussalam unless he has an endorsement granted by the Authority to his licence or recognition permitting it to conduct
Islamic investment business or is exempt from this Order either
{a}
as an Islamic investment institution; or
{b} by operating an Islamic window.
(2)
A holder of a capital markets services licence or a market operator who has an endorsed licence permitting it to conduct Islamic investment business shall-
(a)
appoint a syariah advisory body; and 1255
(b)
obtain the prior approval of the Syariah Financial Supervisory
Board pursuant to the Syariah Financial Supervisory Board Order, 2006
(S 5/2006) for the conduct of the regulated activities that it proposes to provide to investors.
(3)
The Authority may make regulations prescribing the appointment, establishment, conduct and operation of a syariah advisory body.
(4)
The Authority may make regulations prescribing circumstances in which a person may be taken to hold himself out as conducting Islamic investment business.
( 5l
In this section
(a)
"conducting Islamic investment business" means carrying on one or more of the regulated activities in the Schedule in accordance with
Hukum Syara';
(b)
"Islamic investment institution" means a holder of a capital markets services licence or a market operator whose entire business operations are conducted in accordance with Hukum Syara'; and
(c)
"Islamic window" means where a holder of a capital markets services licence or a market operator, other than an Islamic investment institution, conducts Islamic investment business as part of his overall business operations.
(6)
An application for an endorsement to permit a holder of a capital markets services licence or a market operator to conduct Islamic investment business may be made to the Authority when applying for a licence under this
Order to conduct any regulated activities by any-
(a)
body corporate;
(b)
partnership; or
(c)
unincorporated associ~tion, as appropriate in relation to the person providing the service.
(7)
An application for an endorsement to permit a holder of a capital markets services licence or a market operator to conduct Islamic investment business shall be accompanied by a document evidencing the approval of the
Syariah Financial Supervisory Board for every regulated activity to which the application for an endorsement relates.
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(8)
A regulated person or a market operator may apply to the Authority for an endorsement to conduct Islamic investment business or to vary an endorsement already granted.
(9)
The Authority may make regulations providing that certain persons or class of persons may not be granted an endorsement in relation to Islamic investment business.
( 10)
The Authority may make regulations prescribing -
(a)
the requirements that an applicant applying for an endorsement must meet before an endorsement can be granted by the Authority which may include requirements relating to the legal form an applicant must adopt;
(b)
that the person or the market operator is able to demonstrate to the
Authority that approval for the investment has been granted by the Syariah
Financial Supervisory Board;
(c)
the requirements referred to in paragraph (a) may be varied in cases where an application is made by a person or market operator who is, at the time of application, regulated in a jurisdiction other than the Authority;
(d)
certain persons, or market operators or class of persons may be exempted from the requirements referred to in paragraph (a); and
(e)
for any such exemptions to be-
(i)
limited to certain Islamic investment business activities or specified circumstances; or
(ii)
subject to certain conditions and restrictions.
(11)
The Authority may endorse the licence of a capital markets services holder or a market operator permitting it to conduct Islamic investment business as an Islamic financial institution or by operating an Islamic window.
(12)
The Authority may refuse to grant an application for an endorsement or for a variation to an endorsement.
(13)
Upon refusing to grant an endorsement or a variation to an endorsement, the Authority shall, without undue delay, inform the applicant in writing of such refusal and, if requested by the applicant, the reasons for such refusal.
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(14)
The Panel has jurisdiction to hear and determine any appeal in relation to a decision to refuse an application for an endorsement or a variation to an endorsement.
(15)
The Authority may, on its own initiative at any time, by a notice in writing to a holder of a capital markets services licence or a market operator -
{a}
impose conditions and restrictions or additional conditions and restrictions in relation to an endorsement; or
(b)
vary or withdraw conditions and restrictions imposed in relation to an endorsement.
(16)
Where the Authority proposes to impose conditions and restrictions or additional conditions and restrictions or vary or withdraw conditions and restrictions in relation to an endorsement, the Authority must give the relevant regulated person or market operator an opportunity to make representations in writing to the Authority in relation to the proposed changes.
(17)
The requirement imposed on the Authority under subsection (15) shall not apply-
(a)
in relation to the imposition of conditions and restrictions when a licence is first endorsed;
(b)
where the relevant regulated person or the market operator has requested the imposition, variation or withdrawal . of conditions and restrictions under subsection (15); or
(c)
where the Authority concludes that any delay likely to arise as a result of such requirement is prejudicial to the interests of the Authority.
[ 18) Where pursuant to subsection 17{c}, the Authority imposes, varies or withdraws a condition or restriction, without giving the relevant regulated person or market operator an opportunity to make representations, the Authority shall
(a} provide the relevant regulated person or market operator an opportunity to make representations in writing to the Authority within a period of 14 days, or such further period as may be agreed, from the date on which such condition or restriction is imposed, varied or withdrawn; and
(b)
provide a response to any such submission, and make any consequential imposition, variation or withdrawal of the condition or restriction, without undue delay.
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( 19) The Panel has jurisdiction to hear and determine any appeal in relation to a decision to impose, vary or withdraw a condition or restriction.
Discharge of functions.