Scope of these Rules
These rules deal with the application of Section 146 to 149 of the Securities Act of 2016 (the “Act”). They do not address any other section of the Act not directly cited and they have been designed to guide the implementation of the aforementioned sections of the Act as briefly summarized below:
a) Section 146 requires that the chief executive officer and the chief financial officer or any other officers or persons performing similar functions in a listed company or company whose securities are registered with the Securities and Exchange Commission (the “Commission) shall certify in each annual or periodic report filed with the Commission, on a periodic or annual basis, as may be prescribed by the Commission. These rules in the section of this release below will provide guidance on how to implement Section 146 of the Securities Act, 2016.
b) Section 147 requires that a listed company or company whose securities are registered with the Commission shall establish a system of internal controls over its financial reporting and security of its assets and the board of directors shall ensure the integrity of the listed company’s systems and report on the effectiveness of the company’s established internal control system in its annual report. These rules in the section of this release below will provide guidance on how to implement Section 147 of the Securities Act, 2016.
(c) Section 148 requires that listed company or company whose securities are registered with the Commission shall appoint an auditor who is a member in good standing of the Zambia Institute of Chartered Accountants, and such auditor shall not provide auditing services to the company unless the auditor meets the minimum criteria specified by the Commission. These rules in the section of this release below will provide guidance on how to implement Section 148 of the Securities Act, 2016.
(d) Section 149 requires that an auditor of a listed company or company whose securities are registered with the Commission shall, in the assurance report of the company, issue a statement as to the existence, adequacy and effectiveness or otherwise of the internal control system of the company. These rules in the section of this release below will provide guidance on how to implement Section 148 of the Securities Act, 2016.