Published: 04 September 2013

The Government has published the Securities Amendment Act of 2013 aimed at improving the country's capital markets regulatory and supervisory functions.

The amendments are aimed at enforcing the demutualisation of any capital market in Zimbabwe to ensure accountability. This will encourage both foreign direct investment and domestic investment on the capital market.

The Securities Amendment Act 2013 entails the amendment of sections and the titles and the insertion of new sections. New sections inserted include Section 15A of the Audit committee.

The section explains that the Commission as defined by the Act will appoint an Audit committee, the functions of the committee is to make recommendations to the commission regarding the appointment and dismissal of auditors, the committee will assist the commission in evaluating the adequacy and efficiency of its internal control systems among other functions.

Section 15B titled the Licensing committee states that the commission shall appoint a licensing committee and the functions of the committee include the supervision of the CEO and members of the commission's staff, renewal, amendment, cancellation and suspension of licences in terms of the Act.

Part 2 of the principal Act is amended by the insertion after Section 22 of Section 22A titled the Exemption from Liability of Commission, etc, the section states that no liability shall be to commissions or to any commissioner or member of the commission's staff.

The Act amended Section 30 pertaining to the registration of securities exchanges.

The Act also has a new insert as Part 9 titled the Investor Protection Fund. Section 86B states that the Investor Protection Fund shall consist of all contributions, income from investments of the fund, money borrowed on behalf of the fund and money received on behalf of the fund and any other moneys that may vest in or accrue to the fund.

The objective of the fund is to compensate protected investors in accordance with this Act for losses directly incurred by them as a result of malpractice on the part of a contributor.

An investor protection board will be established, the functions of the board entails the administering of the fund, levying contributions from contributors and paying compensation to protected investors.
- herald