The Financial Services Commission (FSC) on Friday issued a cease-and-desist order on Cash Plus Limited. But what does this mean?

FSC Deputy Director George Roper said this means the company will now have to find a licensed representative to transact securities on its behalf, while it goes through the process of getting itself licensed as a securities dealer.

The process of licensing the operation can be lengthy, taking up to several months, he noted, because of the meticulous background checks that have to be done as well as the large amount of paperwork.

"Until they get a licence, they will have to arrange for somebody who has a hold of a licence in order to transact those securities," he said.

He pointed out that in order for the company to be licensed, any shareholder who owns more than 10 per cent of voting shares in the company must be a fit and proper person; that means, they must meet the requirements of the law.

"They cannot be convicted of an offence involving dishonesty; not being an undischarged banker and there should not be anything in his past that should give us reason (to believe) that they are not persons of probity, competently able to exercise sound judgement and due diligence in carrying out their function," he said.

Cash Plus will also have to register its operations with the FSC, which means it will have to disclose material information to the public. That includes quarterly and audited accounts 45 days after the end of the financial quarter and annual financial statements 90 days after the end of the financial year.

Any material changes in its capital and its operations will also have to be disclosed by way of a press release.