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(1) The Commission may, subject to the terms and conditions that the Commission considers fit, accord recognition to a company or organization as a self-regulatory organization in relation to a specified segment of the securities industry, where the Commission is satisfied that that company or organization

(a) has a constitution and internal rules and policies which are consistent with this Act and any enactment applicable to the relevant sector or industry;

(b) has the capacity and the financial and administrative resources required to carry out its functions to perform as a self-regulatory organization including dealing with breaches of the law or of applicable standards or guidelines;

(c) shall not discriminate against a person in offering access to its services or in carrying out its functions as a self-regulatory organization;

(d) is a fit and proper person;

(e) is managed or controlled by competent officers; and

(f) satisfies other criteria specified in die rules of the Commission.

(2) The Commission may, by written arrangement, delegate a power or function of the Commission to a self-regulatory organization.

(3) An arrangement under subsection (2), shall provide for

(a) a power or function delegated to the self-regulatory organization by the Commission;

(b) tire terms and conditions by which the power or function has been delegated and may be exercised by the self-regulatory organization;

(c) the person authorized to exercise the delegation on behalf of the self-regulatory organization; and

(d) the submission to the Commission of periodical reports in respect of the exercise of a delegated power or function by the self-regulatory organization.