The duty and obligation of a person who carries on the business of providing investment advice or advising on corporate finance in extending its services are governed by four general areas namely; contract law, tort of negligence, statutory regulations/laws and professional standards and ethics. In this topic, we have firstly considered the law of contract. We have defined a contract and examined the essential elements that must be present for the formation of a contract and we have also looked briefly at the remedies available for breach of contract. In addition, we have considered the tort of negligent misstatement including tracing the development of this tort by considering leading cases.  We also examined the liability for negligent misstatement under the laws of Securities. The abovementioned advisers are the link between investors and the capital market and as such are expected to practice the highest standard of professionalism. In this regard, we have also looked at the licensing requirements  for persons  who carry on the regulated activity of providing investment advice or advising on corporate finance to apply  for a CMSL or CMSRL under the CMSA examine the criteria for the application of these licenses and the  obligations of licence holders.  Circumstances under which a licence may be revoked or suspended were also highlighted .

Reference:
CMSA 2007: Part V (174-196)

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Module Outlines – Contractual Issues –Negligent Misstatement – Licensing of Persons Who Carry On The Business Of Investment Advice, Advising On Corporate Finance And Their Representatives –Prohibited Conduct And Insider Trading –Conclusion.

Equity Guidelines

CHAPTER 5 : EQUITY OFFERINGS AND LISTINGS
CHAPTER 6 : SPECIAL PURPOSE ACQUISITION COMPANY