(1) The Commission may grant a custodian licence to a company which applies in the prescribed manner and pays the prescribed fee.
(2) A licence granted under this section shall specify the securities business activity or activities that the licensee is permitted to undertake and the licensee shall be restricted to such business as so specified.
(3) The Commission shall refuse to grant a custodian licence unless the applicant—
(a) is a bank or financial institution licensed under the Banking Act;
(b) is a trust company which is a subsidiary of such bank or financial institution; or
(c) is a company other than a company referred to in paragraph (b) that, has the prescribed minimum paid up capital and the Commission is satisfied that the applicant has the experience necessary to enable it to conduct its business and to carry out its duties as a securities custodian;
(d) complies with the insurance requirement under section 80;
(e) satisfies the Commission that it is a fit and proper person to be licensed as a custodian;
(f) will be able, if licensed, to comply with the financial resources regulations made under section 76 that may apply to it;
(g) has specified premises under section 58(1)(b) that are suitable for keeping records or other documents.
(4) In considering whether an applicant is a fit and proper person to be licensed, the Commission—
(a) shall have regard to, in respect of each of its directors and officers—
(i) his or her financial status,
(ii) his or her educational or other qualifications or experience having regard to the nature of his or her application,
(iii) his or her ability to perform his or her proposed function efficiently, honestly and fairly, and
(iv) his or her reputation, character, financial integrity and reliability;
(b) may take into account any matter relating to—
(i) any person who is or is to be employed by, or associated with, the applicant for the purposes of the business to which the application relates,
(ii) any person who will be acting as a representative in relation to such business, and
(iii) any substantial shareholder, director or officer of the company, any other company in the same group of companies or to any director or officer of any such company.
(5) For the purposes of this section, the Commission may have regard to any information in its possession whether furnished by the applicant or not.
(6) In subsection (4)(b)(iii), “substantial shareholder”, in relation to a company, means a person who has an interest in shares in the company—
(a) the stated value of which is equal to or more than 5% of the issued share capital of the company; or
(b) which entitles the person to exercise or control the exercise of 5% or more of the voting power at a general meeting of the company.
(7) The Commission—
(a) shall not refuse an application for a licence without first giving the applicant an opportunity of being heard; and
(b) if it refuses an application for a licence, shall notify the applicant in writing of the refusal and the reasons for it.