| REGULATORY AUTHORITIES JOINT STATEMENT ON NATIONAL INVESTMENT COMPANY LIMITED (NICOL) |
| The National Board of Accountants and Auditors (NBAA), The Capital Markets and Securities Authority (CMSA), The Business Registrations and Licensing Agency (BRELA) and the Dar es Salaam Stock Exchange (DSE) in a meeting held on 27th October 2009 as regulators of companies activities under various laws observed the following:- Please read more: |
| INTERNATIONAL COOPERATION AND EXCHANGE OF INFORMATION |
| CMSA assisted the Malaysian Securities and Exchange Commission in obtaining evidence in Tanzania concerning fraudulent disclosures by a company listed in Malaysia purporting to have entered business deals with a Tanzanian company. With the Assistance of other law enforcement agents evidence was compiled and submitted to SEC Malaysia. SEC Malaysia has now requested the evidence to be recorded in accordance with the Malaysian Law. This is now being facilitated by CMSA and other law enforcement agents. |
| PYRAMID SCHEMES |
| CMSA played a crucial role in alerting the police and other stakeholders in the financial sector with regard to the activities that were being carried on by DECI. DECI was operating a pyramid scheme. This resulted in the operators being prosecuted in June, 2009 after a thorough investigation, seizure and freezing of accounts of the operators. The case is still in Court and it will, among others, determine the appropriate measures to be taken for the confiscated property. |
| NEW MARKET PARTICIPANTS |
| CMSA has proposed legislative amendments to the CMS Act conferring powers to the Minister for Finance to promulgate regulations for any category of market player that emerges in the course of dealings with securities. CMSA has also submitted to the Minister for Finance draft regulations that would govern the business of Nominated Advisers who would be the new category of market professionals necessary for the preparation of Enterprise Growth Market (EGM) companies for public issuance of securities and listing on the Exchange. |
| REVIEW OF THE REGULATORY FRAMEWORK FOR THE CAPITAL MARKET |
CMSA is undertaking a review of the capital market legal and institutional framework with a view to assessing it against 30 Core IOSCO principles. This exercise will impact on the institutional and legal framework leading to substantial amendment of the securities legislation. The assessment exercise will address, among others, the following issues:
- Strengthening of the market supervision and enforcement powers of the CMSA;
- Regulatory framework for establishment of the various capital markets institutions such as:
- Market Development Fund;
- Capital Market Tribunal;
- Trading facilities for securities other than debt and equity securities.
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| MEMBERSHIP TO IOSCO MMOU |
In September, 2007 CMSA applied to become a signatory to the IOSCO MMOU relating to the International Cooperation and Exchange of Information. CMSA has been invited to sign in Appendix B of the MMOU thereby indicating its commitment to ensure that Tanzania fully complies with the IOSCO MMOU requirements.
In the meantime CMSA has initiated amendments to the Capital Markets and Securities Act (CMS Act (Cap. 79)) with a view to complying with the principles relating to International Cooperation and Exchange of Information.
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| Feasibility and operational framework for Municipal Bonds |
| A study coordinated and funded by the FSP project is being conducted by Messrs Cambridge Economic Policy Associates of UK, CivilCredit Advisors of USA and IMMMA Advocates of Tanzania. The study is expected to be finalised later in 2009. As part of the study process, a stakeholders’ workshop shall be held sometimes during the July – September 2009 quarter. This study intends to establish feasibility and required policy and framework changes for establishment of a vibrant sub-sovereign bond market in Tanzania.
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