(1) No person shall

(a) establish or operate a mutual fund;

(b) issue any invitation to the public to acquire any shares in a mutual fund; or

(c) maintain or hold himself out as carrying on the business of dealing in a mutual fund unless the mutual fund is licensed by the Commission.

(2) Any person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of not less than 500 penalty units or imprisonment for a term not exceeding two years or to both and where the contravention is by a body corporate, the body corporate is liable upon summary conviction to a fine of not less than 500 penalty units. [As substituted by Securities Industry (Amendment) Act, 2000 (Act 590) s. 10]