Licensing Requirements

Securities Dealing Firms and Securities Dealers

Securities dealing firms and securities dealers are licensed in terms of section 38(1)(a) of the Securities Act [Chapter 24:25] as read with paragraph A of the Third Schedule to the Securities (Registration, Licensing and Corporate Governance) Rules, 2010.

The following are requirements for a securities dealing firm's licence:

  1. Completed Application forms.
  2. Approval from a registered Exchange.
  3. Names of at least two registered securities dealers.
  4. Memorandum and articles of association.
  5. certificate of incorporation.
  6. a statement of the un-audited accounts for the period of accounting year ending not earlier than six months prior to the date of application and audited annual accounts for the preceding two years (if applicable).
  7. Liquid Capital in the form of a valid Investment deal note of a minimum of $150 000 or equivalent to the projected company's operational costs over a minimum of thirteen weeks, whichever is higher.
  8. An application fee of $8000. Renewal fee is $3000

Download Application Form

 

Requirements for securities dealer's licence

  1. Completed Application forms
  2. Birth certificates
  3. National Identity card
  4. 2 passport size colour photos
  5. Detailed CV
  6. Police clearance certificate
  7. Academic and professional certificates-these include "O" and "A" level certificates, diploma/degree certificates and transcripts. it is a requirement to have passed the following modules of the Registered Persons Examinations of the South African Institute of Financial Markets:
    1. Introduction to International Capital Markets
    2. International Equity Market
    3. Bond Market
    4. Derivatives Market
  8. Letter of undertaking from registered securities dealer attesting that applicant has the requisite experience.
  9. Approval from a registered Securities Exchange
  10. Proof of payment of fees of $2000. Renewal fee is $1500.
  11. Proof of networth of $10 000

Download Application Form

 

Investment Management Companies (Asset Managers)

Investment Management Companies are licensed in terms of section 38(1)(c) of the Securities Act [Chapter 24:25] as read with section 37 of the Securities Amendment Act No 2 of 2013 and paragraph D of the Third Schedule to the Securities (Registration, Licensing and Corporate Governance) Rules, 2010.

Requirements for asset management licence

  1. Memorandum and articles of association.
  2. Certificate of incorporation
  3. Capital Adequacy requirements
    • Capital adequacy requirement of net assets of USD$500 000
    • The applicant must attach an auditor's certificate confirming the current capital
    • The Applicant must also demonstrate how the firm will fund business in the first year of operations.
    • Applicant should submit a statement of the unaudited accounts for the period of accounting year ending not earlier than six months prior to the date of application.
    • If applicable applicant (financial services) should also submit audited annual accounts for the preceding two years.
  4. Proof of payment of fees -$10 000 for initial applications and $3000 for renewal of applications.
  5. Professional indemnity cover/insurance cover.
  6. Personnel in the company should submit certified copies of the following:
    • Birth certificates
    • National Identity card
    • 2 passport size colour photos
    • Detailed CVs
    • Police clearance certificate
    • Academic and professional certificates-these include "O" and "A" level certificates, diploma/ degree certificates and transcripts

Download Application Form

 

Securities Custodian

Securities custodians are licensed in terms of section 38(1)(e) of the Securities Act [Chapter 24:25] as read with paragraph F of the Third Schedule to the Securities (Registration, Licensing and Corporate Governance) Rules, 2010.

Requirements for custodial licence

  1. Insurance cover
  2. Memorandum and Articles of Association
  3. Certificate of incorporation
  4. Auditor's certificate on capital adequacy ($500 000 net asset value)
  5. Last audited set of financials.
  6. Proof of payment of fees ($2000). Renewal fee is $1000
  7. Personnel in the company should submit certified copies of the following:
    • Birth certificates
    • National Identity card
    • 2 passport size colour photos
    • Detailed CVs
    • Police clearance certificate
    • Academic and professional certificates-these include "O" and "A" level certificates, diploma/ degree certificates and transcripts

Download Application Form

 

Investment Advisors

Securities Investment Advisors are licensed in terms of section 38(1)(b) of the Securities Act [Chapter 24:25] as read with paragraph C of the Third Schedule to the Securities (Registration, Licensing and Corporate Governance) Rules, 2010.

Requirements for investment advisors

  1. Professional indemnity cover/insurance cover - refer to Capital Adequacy Framework for Advisors
  2. Memorandum and Articles of Association
  3. Certificate of incorporation
  4. Capital adequacy refer to Capital Adequacy Framework for Advisors. Banks should comply with capital requirements of the Reserve Bank of Zimbabwe. In addition, Banks should provide separate management accounts for the investment advisory business - income statement and balance sheet. 
  5. Last audited set of financials.
  6. Proof of payment of fees ($2000). Renewal fee is $1000
  7. Personnel in the company should submit certified copies of the following:
    • Birth certificates
    • National Identity card
    • 2 passport size colour photos
    • Detailed CVs
    • Police clearance certificate
    • Academic and professional certificates-these include "O" and "A" level certificates, diploma/ degree certificates and transcripts.

Download Application Form

Download Risk Based Capital Adequacy Framework for Investment Advisors

 

 

 

 

Transfer Secretaries

Securities Transfer Secretaries are licensed in terms of section 38(1)(f) of the Securities Act [Chapter 24:25] as read with paragraph E of the Third Schedule to the Securities (Registration, Licensing and Corporate Governance) Rules, 2010.

Requirements for Transfer Secretaries

  1. Professional indemnity cover/insurance cover
  2. Memorandum and Articles of Association
  3. Certificate of incorporation
  4. Auditor's certificate on capital adequacy ($150 000 net asset value)
  5. Last audited set of financials.
  6. Proof of payment of fees ($2000). Renewal fee is $1500
  7. Personnel in the company should submit certified copies of the following:
    • Birth certificates
    • National Identity card
    • 2 passport size colour photos
    • Detailed CVs
    • Police clearance certificate
    • Academic and professional certificates-these include "O" and "A" level certificates, diploma/ degree certificates and transcripts

Download Application Form

 

Securities Exchange

Securities Exchanges are licensed in terms of Part IV of the Securities Act [Chapter 24:25] as read with Part II of the Securities (Registration, Licensing and Corporate Governance) Rules, 2010.

Requirements for a Securities Exchange

  1. Application form
  2. Memorandum and Articles of Association
  3. Certificate of Incorporation
  4. Structure of the Company
    • Please provide the full particulars of the shareholders, ie founding documents of the companies involved and their shareholding if shareholders are companies.
    • Shareholders agreement
    • Any approvals which may be required from other authorities
  5. Applicant's Prospective members in terms of sec 10 of si.100/2010
    1. The board should consist of not fewer than seven and not more than nine members. They should fulfill the items mentioned below and should indicate the item the board member is representing, Sec10 of si.100/2010. It should not be left to the Commission to figure out what the individual is representing.
      1. Licenced securities dealer
      2. Person with experience in baking, fund management, transfer secretary or insurance
      3. Experience in company secretarial work, ICSAZ or Legal Practitioner
      4. Full time director or CEO of exchange
      5. Registered public accountant
      6. Represent investing public
      7. Represent the government
    2. To enable the Commission to assess the eligibility of the candidates, the following information should be submitted for each candidate;
      1. Birth certificates-they assist in ascertaining the identity of the individual, particularly where there is a name change.
      2. National Identity card- identification of individual
      3. 2 passport size colour photos- for identification purposes
      4. Detailed CV- to show experience
      5. Police clearance certificate- for fit and proper reasons, sec 7(1)(d) and (e) of Act
      6. Academic and professional certificates-these include "O" and "A" level certificates, diploma/ degree certificates and transcripts or equivalents.
      7. Reference letters are important especially as proof, where the period of experience is mandatory.
      8. Proof of networth in terms of Paragraph 10 subparagraph (3a) of rules, as read in conjunction with section 7(1)(b) and (c) of the Act, to ascertain his solvency.
    3. Board Committees
      The Composition of the following committees should be submitted:
      1. Listings
      2. Audit (Part II (c) of SI 100 of 2010
      3. Business development/marketing
      4. Membership/registration
  6. Management
    • CEO
    • Compliance person
    • Other key staff
      Information mentioned in 5.ii, item (a) to (f) should be submitted for the above mentioned staff
  7. Details of authorized or paid up share capital
  8. Insurance cover
  9. Clearance certificate from ZIMRA
  10. Fees $10 000. Renewal fee is $5000
  11. Proof of paid in capital for the Guarantee fund
  12. Details of financial assets/capital adequacy (one million)
  13. Projected Financial statements
  14. Systems Manual
  15. Operational and Accounting Manuals
  16. Strategy, Business and Marketing Plan
  17. Conduct of Business Rules
  18. Complaints handling procedure
  19. Listings rules
  20. Schedule of proposed fees
  21. Copy of agreements of systems provider and exchange
  22. Other materials which maybe relevant to your application.

 

Central Securities Depository

The Central Securities Depository is licensed in terms of Part IX of the Securities Act [Chapter 24:25] as read with the Securities (Central Securities Depositories) Rules, 2013.

Requirements for central securities depository rules

  1. A copy of the operator's registration certificate, memorandum and articles of association.
  2. A copy of the scheme under which the central securities depository is to be established.
  3. The proposed rules of the central securities depository.
  4. The business plan and marketing plan of the proposed central securities depository.
  5. Profiles of the chief executive officer and other key employees of the proposed central security depository.
  6. Structure of the company/organization
  7. The applicant's last audited balance sheet and profit and loss statement if any.
  8. A clearance certificate for the applicant from the Zimbabwe Revenue Authority.
  9. Certified copies of any certificates evidencing the qualifications or training of the applicant's directors and secretary.
  10. Proof of the paid-in capital of the operator.
  11. Proof of money set aside for the guarantee fund of the central securities depository.
  12. Insurance Policy
  13. Auditor's certificate on capital adequacy
  14. Operational and Accounting manuals
  15. Proof of payment of fees
  16. Copy of agreement between systems provider and the Applicant
  17. Schedule of proposed fees