The Securities and Exchange Commission (SEC) has said it has placed on hold the issuance of new licences to Fund Managers for six months starting Tuesday, 1 October 2019.

In a statement, SEC, which is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected, said it “wishes to inform the investing and general public that it has placed a moratorium on the issuing of new Fund Management Licences for a period of six (6) months”.

The Commission, which is also mandated to maintain surveillance over activities in securities to ensure orderly, fair and equitable dealings in securities and to protect the integrity of the market in accordance with Section 2, 3 and 208 of Act 929, also noted that it “shall, however, continue to review applications for renewals for existing Fund Management licencees and new market products”.

“This is to enable the SEC focus on the following: a thorough review of the current licensing regime for a stronger and a more efficient and resilient market and the introduction of new licensing guidelines and directives; a resolution of the current challenges facing the securities industry and the capital market; the introduction of new products in the capital market to deepen the existing market and to provide more investment options for investors and the general public; and a thorough overhaul of the Commission's activities”.