(1) In deciding whether a dealer or his representative or an investment adviser or his representative shall hold a licence under this Law, the Commission may enquire into any transactions involving the purchase or sale of securities entered into by that person, whether directly or indirectly, during any period of 12 months preceding the application for the licence or renewal of the licence, (referred to in this section as the relevant period) to ascertain if that person has in such transaction or series of transactions used dishonest, unfair or unethical methods or trading practices, whether such method or trading practices constitute an offence under this Law or not.

(2) For the purpose of subsection (1), the Commission may, in such form and within such time as it may specify by notice in writing, require a dealer or his representative or an investment adviser or his representative to submit detailed information of all or any transactions involving the purchase or sale of securities, whether such transactions were completed during the relevant period before or after the commencement of this Law.

(3) Any person who, without reasonable excuse, fails or refuses to submit information to the Commission within the time specified in the notice referred to in subsection (2) or who gives false or misleading information shall, in addition to any other penalty that may be imposed under this Law, be liable in the case of an application for renewal of a licence to have his licence revoked under section 62 and in the case of first application for a licence to have his application refused.