A NEW set of rules and requirements for asset management firms and collective investment schemes will only be adopted next year after consultations with industry players, the Securities and Exchanges Commission of Zimbabwe has said. Asset management firms now fall under the supervision of SECZ following the signing into law of the Securities Amendment Bill last week.
They were previously regulated by the Reserve Bank of Zimbabwe.
The RBZ took over regulation of asset management companies as there was no capital markets regulator at that time.
When SECZ was set up in 2008, the intention was for the commission to regulate asset managers but that could not have been done without amending the Securities Act.
Unlike the previous RBZ regulations, there will be no limit on the number of firms that can be licensed.
SECZ chief executive Mr Tafadzwa Chinamo said asset management firms will continue using the rules and requirements prescribed by the RBZ until new rules are introduced next year.
“It is still too early to effect changes to the requirements at the moment. So the firms will continue using the same rules until new ones are introduced in 2014.”
Mr Chinamo said SECZ will make formal engagements with the asset firms in coming up with new set of regulations.
“It is a gradual process which needs time but, however, we will make necessary announcements at the appropriate time,” he said.
Mr Chinamo said the meeting will be held at the beginning of next year.
Under RBZ, all asset management firms were required to register in line with the central bank’s requirements which included having a minimum paid-up capital of US$500 000.
The managers (of the asset management firms) must be fit and proper and have sufficient qualifications and experience for the management of a company carrying out the business of an asset manager. Companies were also required to present the certificate of incorporation, memorandum and articles of association and furnish the central bank with past financial performance statements, proof of capital and tax clearance certificates. — FinX.