This document represents the Commission’s Policies and Procedures for the licensing of participants in the Zambian capital markets.
The SEC licencing policies and procedures manual has been designed to enable the Commission undertake part of its core mandate as provided for in the Securities Act.
Pursuant to Section 4 of the Securities Act, the Commission’s mandate includes:
to take all available steps to ensure that this Act and any rules made under this Act are complied with;
to license and monitor the activities of licensees;
to make, issue, monitor and enforce rules for the conduct of participants in the securities industry and for the supervision and investigation of that conduct, including rules relating to licensing and for the revocation and suspension of licences;
to promote and encourage high standards of investor protection and integrity among members of any securities exchange;
to support the operation of a free, orderly, fair, secure and properly informed securities market; The License Register as required by the Commission is a public document i.e must be available for inspection by members of the public at a fee.
Types of licenses
The following types of licenses are issued by the Commission:
Securities Exchange – issued under Part III of the Act authorises a company to carry on a business as a securities exchange upon obtaining a requisite SEC license
Dealer’s license – Part IV of the Act authorises a company to carry on a business as a dealer upon obtaining a requisite SEC license. Dealer means a person who carries on the business of dealing in securities, whether as principal or agent.
Investment Advisers license – Issued under Part IV of the Act authorises the licensee to carry on a business as an investment adviser(IA) upon obtaining a requisite SEC license. IA means a person who carries on a business of providing advice to persons with respect to investments
Representative’s license – Issued under part IV of the Act authorises the licensee to be employed as or act as the representative of a licensed dealer or licensed investment adviser. Reprentative is further defined as a person who is employed by or acts for a dealer or an investment adviser and who performs for that dealer or investment adviser, any of the functions of a dealer or investment adviser, as the case may be, other than the work ordinarily performed by accountants, clerks or cashiers, whether his remuneration is by way of salary, wages, commission or otherwise, and includes any director or officer of a company who performs any such functions for the company.
The Act prescribes the application forms to be completed for each type of licence. Further the commission has developed checklists for each type of license intended to guide applicants. Samples of these checklists are attached from Appendices 2 to 4.
