24 Feb 2021


The Securities and Exchange Commission (SEC) has on the 9th December 2020 granted recognition of the Capital Markets Association of Zambia (CMAZ) as a self-regulatory organization.

The Commission pursuant to section 29 of the Securities Act, No.41 of 2016 and having been satisfied that it is in the public interest to do so, granted the Capital Markets Association of Zambia RECOGNITION AS A SELF-REGULATORY ORGANISATION (‘’SRO’’). The SRO status gives CMAZ the power to regulate the standards of practice and business conduct of its members in accordance with its by-laws, rules, policies, practices, and interpretations.

The SEC as regulator of the capital markets in Zambia ensures the supervision and development of the Zambian capital markets through licensing, registration and authorization for financial intermediaries, issuers of debt and equity instruments and collective investment schemes and protection of interests of persons who invest in securities to suppress illegal, dishonorable, and improper practices. As part of its core functions, the SEC promotes: High Standards of Investor Protection; Integrity of Industry; Self-Regulation of Industry Players, Orderly Growth and Development of Industry; Operation of Free, Orderly, Informed Market, among others.

As a delegatory function by the Commission, the granting of the SRO status is subject to meeting stipulated terms and conditions that upholds the mandate of the Commission. In particular, the Commission pursuant to section 30 of the Act has delegated to CMAZ the following functions or powers relating to the regulation of the members of the Capital Markets Association of Zambia:

  1. Education of investors and its members;
  2. Observance of Securities laws by its members;
  3. Execution of a standard of conduct for its members and the implementation of the same by its members;
  4. Inspection of its members;
  5. Ensuring the submission of annual reports on time by its members to the Commission;
  6. Treatment of all members and applications for membership in a fair and transparent manner;
  7. Ensuring that it promptly informs the Commission of contraventions of the Act and/or any subsidiary legislation made pursuant to it, or of which it is, or should be aware;
  8. Ensuring that it conducts training programmes for its members and awareness programmes for investors;
  9. Introduction of a Best Practice Policy for its members; and
  10. Institution of internal control standards including procedures for inspecting, auditing, reviewing, monitoring and surveillance of its members.

Phillip Katai Chitalu, SEC CEO stated – ‘The Commission congratulates Mr Nicholas Kabaso as president of CMAZ and his Executive for meeting the required fit and proper test to becoming a self-regulatory organisation. We are hopeful and confident that CMAZ will continually comply and endeavor to exceed the required terms and conditions of a self-regulatory organisation as stipulated under the Securities Act.’

Nicholas Kabaso, CMAZ president remarked – ‘We are profoundly grateful to the Securities and Exchange Commission for showing confidence in the direction and vision of the Capital Markets Association. The recognition comes at a time when our economy needs the capital markets for its long-term sustainability. Therefore, it is our honor to be the inaugural Board that took on this exciting yet heavy responsibility. It certainly calls for additional work in order to continue to foster investor confidence and elevate the level of investment practice to international standards. There is no doubt that our Capital Markets remain very well poised for growth over the medium to long term and we are happy to be part of such huge milestones being achieved.’