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PREVENTION OF FRAUD (INVESTMENTS) ACT (NORTHERN IRELAND) 1940 - SECT 15

Exemption of certain dealers.

15.(1) The Ministry may by order declare any person to be an exempted dealer
for the purposes of this Act, subject to the following conditions being
fulfilled so long as the order is in force, that is to say:

(a)the main business of that person must consist of one or more of the
following activities:

(i)carrying on some business, other than the business of
dealing in securities, and

(ii)dealing in securities in one or more of the ways mentioned in the next
following sub-section; and

(b)the greater part of any business of dealing in securities done by him in
Northern Ireland otherwise than in one of the ways referred to in
sub-paragraph (ii) of paragraph (a) of this sub-section must be effected with,
or through the agency of, one or more of the following persons, that is to
say:

(i)a member of any recognised stock exchange or
recognised association of dealers in securities,

(ii)the Bank of England, any licensed bank, a statutory corporation, a
municipal corporation or an exempted dealer,

<(iii)a person acting in the capacity of manager or trustee under an authorised unit trust scheme,


<(iv)a person acting on behalf of such a person as is mentioned in sub-paragraph (i), sub-paragraph (ii) or sub-paragraph (iii) of this paragraph, and


(v)the holder of a licence,

(b)or effected, with the consent of the Ministry, through the agency of a
member of a stock exchange other than a recognised stock exchange.

(2) The ways of dealing in securities referred to in sub-paragraph (ii) of
paragraph (a) of the preceding sub-section are as follows, that is to say:

(a)issuing any document which is, or is to be deemed to be, a prospectus
within the meaning of the Companies Act (Northern Ireland), 1932;

(b)making or offering to make with any person an agreement for, or with a view
to, the underwriting of securities;

(c)making any invitation to persons to subscribe for securities or to purchase
securities on the first sale thereof;

(d)making any invitation to persons to subscribe for, or purchase, securities
of the Government of any part of His Majesty's dominions or the Government of
any foreign state, or securities of any statutory corporation or
municipal corporation;

(e)effecting any transaction with a person whose business involves the
acquisition and disposal or the holding of securities, being a transaction
with that person as a principal:

Provided that a person shall not, by reason only of his having made such an
invitation as is mentioned in paragraph (c) of this sub-section, be taken to
have dealt in securities in one of the ways referred to in sub-paragraph (ii)
of paragraph (a) of the preceding sub-section, if permission to deal in such
securities as were the subject of the invitation has not been granted by the
Stock Exchange, London, within the period of three months beginning with the
date on which the invitation was made, or within such longer period (if any)
beginning with that date as the Ministry thinks fit.

(3) If, with respect to any exempted dealer, the Ministry considers that the
order declaring him to be an exempted dealer ought to be revoked on either of
the following grounds, that is to say:

(a)that the conditions subject to which the order was made have not been
fulfilled in his case, or

(b)that the circumstances relevant to the making of the order have materially
changed since the making thereof,

(4) The Ministry shall cause to be published, at such times and in such manner
as it thinks proper, the names and addresses of all persons who are for the
time being exempted dealers, so, however, that the said information shall be
published not less often than once a year.

© 1940 Crown Copyright

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