Published On: Wed, Nov 30th, 2016

Seczim on move to strengthen capital markets.

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Harare-The Securities Exchange Commission of Zimbabwe says it is working with key stakeholders in asset management to strengthen capital markets and make Zimbabwe attractive to investors.

Asset management business plays a critical role in the mobilisation and allocation of resources to key sectors of the economy.

Addressing delegates at the launch of a new asset management firm, Smartvest Wealth Managers, Seczim board member  Pearson Chitando said it is against this background that the Commission continued to improve and strengthen the regulation of the sector to ensure that it remains relevant and attractive to potential investors.

“The Commission has been working closely with all players in the industry in addressing challenges faced by the asset management firms since dollarisation. New and innovative products are going to be key drivers of the industry’s growth, hence the Commission’s appeal to Smartvest and all industry players to have a look at what they have on offer and its relevance in this modern world.,” he said.

According to Chitando some of the market regulations and products under consideration include Property Unit Trusts guidelines ,Implementation of Risk Based Supervision and Markets Monitoring as well as revision of capital thresholds in line with changes in capital markets infrastructure;,

“…….Wholesale changes to Securities and Exchange Act and Collective Investments Schemes Act, Reduction in settlement cycle from T+5 to T+3 in line with the regional counterparts particularly South Africa and Introduction of intraday trading supported by legal framework for securities lending; “ he said.

He said Seczim was also working on market access to Securities Exchanges by investors and on reduction in costs of transactions in line with the Commission’s long term target of Zimbabwe being the cheapest capital market in the world.

Smartvest Wealth Managers formerly AfrAsia Capital Management, rebranded in December 2015 following the successful implementation of a Scheme of Arrangement under Grant Thornton which saw  the transfer of ACM shareholding from AfrAsia Bank to new shareholders, including management and staff.