SEC RULES CREATE A NEW LICENSE CATEGORY FOR DIGITAL SUB-BROKERS

The Securities and Exchange Commission (SEC) recently created a new category of operators in the capital market by creating a new licence category for Digital Sub-Brokers.

This move is in part a regulatory response to the participation by fintech companies in the capital market sector. Therefore, in recognition of the growing activities of the Fintech companies, the SEC has created the Sub-Brokers Serving Multiple Brokers through a Digital Platform (Digital Sub-Brokers) licence category.

In this newsletter, we examine the licensing requirements for the Digital Sub-Brokers licence while highlighting the potential implications of this new licence category on the overall growth of the capital market especially in improving the participation of retail investors in the market

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