Press Release

Notice- Extension of period of compliance with ss.146- 149

 

  Click here to download signed document

NOTICE OF EXTENSION OF EXEMPTION FOR AUDITORS AND BOARDS OF DIRECTORS OF LISTED COMPANIES AND COMPANIES WHOSE SECURITIES ARE REGISTERED WITH THE COMMISSION FROM THE INTERNAL CONTROL REPORTING REQUIREMENTS OF SECTIONS 147 AND 149 OF THE SECURITIES ACT, No. 41 OF 2016

The Securities and Exchange Commission (the “Commission”) is a statutory body established under the Securities Act, Cap. 354 of the Laws of Zambia (repealed) and whose existence is continued under the Securities Act, No. 41 of 2016 (the “Securities Act”). The Commission has a statutory mandate to protect investors in the capital markets.

Section 4 (2) of the Securities Act empowers the Commission to exempt persons or securities from its requirements. In exercise of the powers vested in the Commission aforesaid, the Commission hereby notifies the public that—

  1. the temporary exemption granted to the Board of Directors of a listed company, or a company whose securities are registered with the Commission, from reporting on the effectiveness of the company’s internal control system in its annual report as required by section 147 (2) of the Securities Act, is extended to 31st December, 2019;
  1. the temporary exemption granted to the auditors of a listed company, or a company whose securities are registered with the Commission, from issuing a statement in the audit report of the company as to the existence, adequacy and effectiveness or otherwise of the company’s internal control system as required by section 149 of the Securities Act, is extended to 31st December, 2019;
  1. the extension of the temporary exemption granted to both the Board of Directors and the auditors of a listed company, or a company whose securities are registered with the Commission, shall cease to operate for all annual reports covering financial reporting periods beginning on or after 1st January 2020;
  1. the extension is made in order to allow the Commission and the Zambia Institute of Chartered Accountants continue developing and implementing an appropriate reporting framework to guide the form and content of compliance with the requirements of sections 146, 147 and 149 of the Securities Act;
  1. a listed company, or a company whose securities are registered with the Commission shall commence the filing of annual and periodic reports with the Commission in line with the proposed reporting framework from 1st January 2020; and
  1. this extension does not preclude auditors from the requirement to audit the annual financial statements of listed companies or companies whose securities are registered with the Commission as provided under section 148 (2) of the Securities Act. 

For further enquiries please contact the Commission on +260 211 227012/ 222368/ 222369 or info@localhost. 

Dated this                                                        day of                                                                                   2019  

Signed for and on behalf of the Commission Board by:

                                                                                               

Mr. Amos Siwila

Board Chairperson