Are stock brokers legal ? ? ? ?

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TiberiusMineola

Guest
I?ve never seen a stock brokerage office in the 7 years I?ve been living in La Republica. Anywhere in the entire country? From the Dominican, North America, Western Europe or elsewhere else? Merrill Lynch? Fidelity? Quick & Reilly? Is selling stocks, bonds, mutual funds, etc. legal in La Republica? Not enough wealth? Brokerage accounts are perhaps illegal? Cultural obstacles? Complete lack of interest by Dominicans and foreigners? Comments & opinions are welcome.
 
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Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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The stock market in the DR is in its infancy. A new law was passed in 2000 (Law #19-00) to replace a cumbersome statute dating back to 1964 which was never used. The enabling regulations are still in process of being drafted.

There are ?brokerage houses? in the DR, most of which are small affiliates to the main banks. All they do is basically trade corporate commercial paper. No Dominican company that I know of has made a public stock offering (except for Tricom which did it in the US) although there is talk that this will happen in the near future once all the legal framework is put in place.
 
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TiberiusMineola

Guest
Clarifaction from Attorney Guzman

Thank you for the prompt reply. I fear that I didn't state my question with sufficient precision. To paraphrase, can an American or Wetern European stock brokerage [exs. Merril Lynch, Fidelity, Smith Barney] legally open a branch office in La Repulica, then sell to tis customers - Dominican or foreign - equities, bonds, &/or mutual funds readily available & sold on American, Canadian, or European stock exchanges? Legal? Illegal? Largley unclear? Ignoring the existence or nonexistence of any Dominican stock exchange. Again, thank you.
 
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