SECURITIES AND EXCHANGE COMMISSION Protecting Investors in the Capital Markets
Notice of Supervisory Action
Possession of Madison Asset Management Company Limited
Lusaka, 3 March 2020-Further to the Press Release issued on 2nd March 2020, we wish to thank you all for the responses, concerns and clarity sought with regards to the supervisory action taken by the Securities and Exchange Commission on Madison Asset Management Company Ltd(MAMCO) effective 2nd March 2020.
First and foremost, we wish to allay the fears that MAMCo has been closed or is undergoing liquidation. To this end, we wish to reiterate that the supervisory action undertaken is a possession done pursuant to section 11(4) of the Securities Act, No. 41 of 2016 and whose objective is to ascertain the state-of-affairs of MAMCO relating to the interests of the investing public in accordance with the Securities Act. As at yesterday of March2020, the Interim Managers appointed by the SEC have moved on site and are undertaking stock of the state of affairs related to the non-compliance actions of MAMCo Management that have raised regulatory concerns and therefore led to the possession. For the avoidance of doubt, the regulators are keen to ensure that investors interests are secured, and we devise the best amicable solution for primarily the investors in the prohibited products as well as other creditors of MAMCO.
For now, the Interim Manager’s team will focus on undertaking an extensive review of MAMCO.
We further wish to advise the public that the regulatory action in taking possession of MAMCO does not extend to the other Madison group companies operating in the financial services sector as each of these companies is a separate legal entity. We therefore wish to appeal to the media and the public to remain calm and rest assured that the Commission’s action in taking possession has been done in the best interest of protecting investors in MAMCo.
Issued by:
Phillip K. Chitalu
CHIEF EXECUTIVE OFFICER
SECURITIES AND EXCHANGE COMMISSION
