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Integrity Supervision - Securities business

Supervision - Securities business

The State Ordinance on the Supervision of the Securities Business (AB 2016 no. 53) (SOSSB) provides the CBA with a solid legal framework to supervise the securities market as well as the parties’ active in the securities business. Prudential supervision of the securities business aims primarily at ensuring the proper functioning and integrity of the financial markets.

a. Admission/ market entry

Securities brokers, asset managers, investment institutions, custodians, and stock exchanges operating in or from Aruba need to obtain a license from the CBA to conduct their activities. Furthermore, the SOSSB prohibits the offerings of securities, as defined in article 1 of the SOSSB, to the public in Aruba or to admit securities to be traded on a stock exchange held in Aruba without a prospectus approved by the CBA. Mainly via off‐site surveillance and periodic on‐site examinations the CBA conducts ongoing oversight over the securities business.

b. Law and regulations

Securities brokers, asset managers, investment institutions, custodians, and stock exchanges must all comply with the stipulations laid down in or pursuant to the SOSSB and all other legislation applicable to the securities businesses.

Supervisory law applicable to the securities business:

Regulations applicable to securities business:

  • Personal Questionnaire for prospective Managing Directors, Supervisory Directors, and Shareholders-natural persons of regulated entities 
  • Directive on the appointment of an external auditor
  • Policy paper on outsourcing arrangements
  • Regulation on regulatory reporting
  • Regulation on minimum capital and solvency requirements

c. Enforcement 

In cases where the CBA identifies a situation of noncompliance with the applicable supervisory laws and regulations, formal or informal (a normative conversation or a written warning) measures are considered. The decision whether to apply formal or informal measures depends, among other things, on the seriousness of the case. Please refer to the CBA’s Enforcement policy for more information.