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(1) Each broker-dealer shall establish, maintain and enforce procedures to supervise the activities of employees to ensure compliance with the Law and Regulations made under the Law and to ensure compliance with the laws, rules, regulations and procedures of the stock exchange where the broker dealer is a member.

(2) Each investment adviser licensed to manage a portfolio of securities shall establish, maintain and enforce procedures, which will enable it to supervise the activities of its employees in order to ensure compliance with the Law and Regulations made under it.

(3) Each broker-dealer or investment adviser licensed to manage a portfolio of securities shall appoint a suitably qualified officer from its staff as a designated compliance officer.

(4) The appointment shall be with written notice to the Commission within 60 days after a person becomes a holder of a broker-dealer or investment adviser’s licence.

(5) The compliance officer shall monitor and issue periodic reports on the

(a) Non-compliance of the Law and Regulations by the broker-dealer and investment adviser; or

(b) The non-compliance with the rules, regulations and procedures of the stock exchange by the broker-dealer.

(6) The frequency of the reports shall be as required by the Commission and the management of the dealer, investment adviser or stock exchange.

(7) The compliance officer shall,

(a) report directly to the chief executive officer of the broker-dealer or the investment adviser;

(b) in the case of a broker-dealer, submit written reports to the Commission on the degree of compliance of the broker-dealer with the Law and Regulations and with the laws, rules, regulations and procedures of the stock exchange of which the broker-dealer is a member at such intervals as the Commission may require;

(c) In the case of an investment adviser licensed to manage a portfolio of securities, submit written reports to the Commission on the degree of compliance of the investment adviser with the Law and Regulations.