Securities dealers licensing category

SECTION 38 (1) of the Securities and Exchange Act [Chapter 24:25] provides that no person shall carry on any securities dealing activity unless he or she is a holder of a securities dealers license.

Securities dealers are responsible for trading securities on behalf of investors. By doing so, the securities dealer does not own the securities but charges a commission based on the gross value of the transaction.

To be licensed by the Commission as a securities dealer, one must meet the following requirements:

Be at least twenty-five (25) years old

Be ordinarily resident in Zimbabwe

Have been employed in a capacity approved by the Commission in a broking firm for at least two (2) years

Have the qualifications and experience prescribed in the third schedule of the Securities ( Registration, Licensing and Corporate Governance ) Rules, 2010 Should be employed in a securities dealing firm under the management of a chief executive or managing director who has practised as a broker for at least two years To be licensed as a securities dealing firm, a company must: Be registered and should satisfy the commission that it will comply with the securities legislation Employ at least two licensed securities dealers and an approved compliance officer Ensure that the firm’s licensable activities are carried out by licensed securities dealers Ensure that the firms’ directors are fit and proper as per section 41 of the Securities and Exchange Act [Chapter 24:25] Carry on its licensable activities from suitably located and equipped premises

Have adequate capital as determined by the commission from time to time

For more comprehensive requirements, refer to the Securities and Exchange Act (Chapter 24:25) and the Securities (Registration, Licensing and Corporate Governance) Rules, 2010 which are available on the SECZ website: www.seczim.co.zw

Upcoming AGM Nampak Zimbabwe Limited, Boardroom, 68 Birmingham Road, Southerton, Harare, Wednesday 08 Feb, 1200 hrs.