Objective of the SEC Risk Management Guidelines
In 2021, the Board of the Securities and Exchange Commission approved the Commission Risk Based Supervision Policy “RBS Policy”. The RBS Policy represents the Commission’s commitment to transition its supervision of Zambian Capital markets from a compliance-based regime to a risk-based supervision regime. The Commission’s approach to supervision has therefore evolved to focus on the risk. Risk has been defined as the threats posed by the activities of capital market operators to the achievement of the Commission’s core supervisory objectives. Under Sub section 9(1) of the Act, the Commission’s mandate is to create and promote conditions in the capital markets aimed at ensuring an orderly growth, integrity, and development of the capital markets. Sub section 9(2) spells out further functions of the Commission which include matters specific to the conduct of CMOs such as to: