Zambia’s Securities and Exchange Commission delegates reg-status to Capital Markets Association, recognizes it as an SRO

The securities regulator in Africa’s copper hotspot Zambia, on February 04, delegated regulatory status to the Capital Markets Association (CMA) by recognizing it as Self-Regulatory Organization (SRO). The Securities and Exchange Commission (SEC) pursuant to section 29 of the Securities Act, No.41 of 2016 granted the CMA recognition as a self-regulatory organization which will grant the association power to regulate the standards of practice and business conduct of its members in accordance with its by-laws, rules, policies, practices, and interpretations.

This recognition will be subject to meeting stipulated prescriptions set by the Securities and Exchange Commission (SEC) terms persuant with the Act ranging from ensuring timely submission of annual reports by members to ensuring that members adhere to capital markets prescriptions.

The SEC will nonetheless remain the apex regulator of the capital markets is mandated by the Act to ensure supervision and development of the capital markets through licensing, registration and authorization for financial intermediaries, issuers of debt and equity instruments and collective investment schemes and protection of interests of persons who invest in securities to suppress illegal, dishonourable, and improper practices. 

“It delights me to see provisions that we strived to include in the Act, for purposes of meeting best practices, being invoked for the well-being of our local capital market. At a time when the economy needs financial markets that instill confidence as being safe and operated with integrity, I am confident the professionals who are members of CMAZ and have agreed to adopt a self-regulatory regime will deliver to everyone’s expectations,” SEC Board Chairperson Amos Siwila stated

“The Commission congratulates the President of CMAZ and his Executive for meeting the required fit and proper test to becoming a self-regulatory organisation. We are hopeful and confident that CMAZ will continually comply and endeavor to exceed the required terms and conditions of a self-regulatory organization as stipulated under the Securities Act,” SEC Chief Executive Officer – Phillip Katali Chitalu stated.

Accepting the SRO status Capital Markets Association of Zambia President Nicholas Kabaso, expressed gratitude to the regulator for showing confidence in the association. 

“The recognition comes at a time when our economy needs the capital markets for its long-term sustainability. It certainly calls for additional work in order to continue to foster investor confidence and elevate the level of investment practice to international standards. There is no doubt that our Capital Markets remain very well poised for growth over the medium to long term and we are happy to be part of such huge milestones being achieved,” Kabaso said.

The Kwacha Arbitrageur