“The overall mandate of Securities &Exchange Commissions in Zimbabwe and Globally” The Securities Commission S e c of Zimbabwe

 Introduction  Role of SECZ – Objectives & Functions  Importance of Securities Regulation Globally  Career opportunities In Capital markets  Conclusion

 World-wide capital markets play a key role in the development of the economy, hence its necessary to regulate these markets.  Regulation is usually done by Securities and Exchange Commissions, though the names vary from one jurisdiction to the other for instance,  Capital market regulation in Zimbabwe is done by the Securities Commission of Zimbabwe, In South Africa, by the Financial Services Board, in America, by the U.S. Securities & Exchange Commission.  Though the names differ, they all strive towards one goal i.e effective regulation of securities market

 The role of the regulator is very important in capital market given the varied participants and intermediaries operating in this market  The regulator has a 3 fold duty to perform:  Regulatory Role - To ensure that the market participants behave in an orderly manner  Developmental Role - To ensure the continuity of the securities market as a major source of finance for individuals, corporates and the Government  Investor Protection Role – To protect the interest of investors

 SECZ is an independent,statutory regulatory body of the Zimbabwean capital market, which was established through the enactment of the Securities Act (Chapter 24:25).  The Act was promulgated in 2004,and was operationised in 2008 repealing the Zimbabwe Stock Exchange Act

Key objectives of SECZ are to:  Provide high levels of investor protection  Reduce systemic risk  Promote market integrity and investor confidence  Prevent market manipulation, fraud and financial crime  Ensure transparency in capital and securities markets.  Promoting investor education.

 Investor Protection  Protection against misleading, manipulative or fraudulent practices, including insider trading, and the misuse of client assets  Full disclosure of information which is material to investors’ decisions  Only duly licensed or authorized persons should be permitted to hold themselves out to the public as market operators  Supervision of market participants  SECZ established an independent Investor Protection Fund meant to meet the claims of investors against defaulting members

 Reduction of Systemic Risk  Reduce the risk of failure (through measures including capital and internal control requirements)  Respond to market disruptions through facilitation of stable domestic and global cooperation and information sharing.( MOU with local financial regulator- RBZ,IPEC to facilitate information sharing)  Ensure that capital and other prudential requirements are sufficient to address appropriate risk taking

 Promoting market integrity and investor confidence  Confidence in any capital market, is perhaps the single most important pre-requisite for its sustenance and growth  Establishment and enforcement of strong and effective regulation which ensure fairness and prevent activities which damage investor confidence.

 Promotion of investor education  Undertaking programmes designed to inform and sensitise the investing public on the operation of capital markets (workshops, seminars, expo and exhibitions, career guidance programmes for school kids etc)  Instil basic knowledge about the capital markets, what is involved, how to participate  Equipping investors against some of the obvious risks and pitfalls that go with every investing opportunity.

To achieve its objectives,SECZ is vested with the following key functions :  Regulating trading and dealing in securities (e.g. shares)  Registering, supervising and regulating securities exchanges ( Zimbabwe Stock Exchange is the only exchange at the moment)  Licensing, supervising and regulating licensed persons (stockbrokers, custodians, transfer secretaries, investment advisers)

 SECZ has regulatory jurisdiction over all intermediaries and persons associated with the securities market  It can issue directions in relation to securities market to the market participants  SECZ can specify matters for disclosure in order to ensure investor protection  It can investigate matters relating to securities and adjudicate violations  Can call for information from, undertaking inspection, conducting audits of licensed players

 All intermediaries associated with the securities market are to be licensed by SECZ and are governed by specific regulations  SECZ is empowered to take any disciplinary action against any intermediary violating any regulation, it has powers to suspend or cancel registration In summary, SECZ has been given the necessary autonomy and authority by the Government to develop and regulate the securities market.

 The main rules and regulations governing the securities market are:  The Securities Act  SI 100 of which lay down the registration and licensing criteria for market participants as well as the code of conduct  SECZ is in the process of framing various regulations and guidelines in order to govern the working of the securities market.

 Securities regulation is therefore essential to:  To instil confidence in markets  To make markets more credible and efficient  To bring transparency and openness to markets  To curb unscrupulous activities and players from manipulating markets

 SECZ strives to create transparent, orderly and efficient capital markets in order to attract investors  To be attractive to potential investors, a market must have earned investor confidence, which in turn is achieved through the imposition and effective enforcement of rules which ensure the market is operated efficiently and effectively.

 A well regulated market has the potential to encourage additional investors to partake, and contribute in, furthering the development of the economy  The existence of a strong regulatory framework is essential to the creation of credible capital market which is attractive to both investors seeking a legitimate place to invest their money, and  issuers seeking to attract capital to support legitimate business..

Various Career opportunities exist in the following market intermediaries that are licensed by SECZ:  Securities Exchanges ( e.g. ZSE)  Securities Dealing Firms (i.e. Stockbrokers, authorised dealers, compliance officers, Client liaison officers, research analysts etc )  Transfer Secretaries  Custodians  Securities Investment Advisors  Investment management companies

 The regulation of capital markets is essential for the market to play its economic and developmental role  In order for capital markets to strive, there must be adequate safeguards which will enhance public confidence in the market  SECZ will continue to:  Develop systems, regulations and codes of conduct to guide the market.  Contribute to both the protection of investors as well as the orderly development of the capital market

Thank You