1 UPDATE ON MARKET DEVELOPMENT ACTIVITIES AT THE CAPITAL MARKET OPERATORS WORKSHOP BY: MUTUMBOI MUNDIA & MUBANGA KONDOLO JR HOTEL INTERCONTINENTAL 05.04.2018
2 NAVIGATION COMMISSION’S MANDATE MARKET DEVELOPMENT MANDATE WHAT HAS SEC BEEN UP TO SO FAR? REPORT ON NATIONAL FINANCIAL INCLUSION STRATEGY
3 COMMISSION’S MANDATE • Investor protection: ▫ Market Supervision ▫ Market Development • What is your opinion? ▫ Regulators business should be regulation full stop!
4 MARKET DEVELOPMENT - MANDATE Securities Act Cap.354 (1993) Section 4 (l): “ encourage the development of securities markets in Zambia and the increased use of such markets by investors in Zambia and elsewhere” Securities Act No.41 (2016) “(q) encourage the development of securities and securities exchanges and the increased use of such exchanges; (r) provide, promote or otherwise support financial education, awareness and confidence with regard to financial products, institutions and services; (s) prescribe certification standards and accreditation for licensees;”
5 WHAT HAS SEC BEEN UPTO SO FAR? Global Initiatives: ▫ World Investor Week (IOSCO – also a rich source of ideas) First launched in October 2017 ▫ Financial Literacy Week/ Global Money Week March ▫ World Savings Day 31 st October
6 WHAT HAS SEC BEEN UPTO SO FAR? National Initiatives ▫ Financial Sector Development Plan (ended in 2015) National Financial Education Strategy Capital Markets Association of Zambia formation Let’s Talk Capital Markets Awareness Campaign Provincial shows [2018 starting late April] ▫ Financial Sector Development Policy ▫ National Financial Inclusion Strategy (launched in Nov 2017) Capital Markets Working Group [Capital Markets Master Plan]
7 WHAT HAS SEC BEEN UPTO SO FAR? …c ont’d SEC Initiatives ▫ Introduction of professional courses - CISI Launched in 2016 and ZCPIT (formerly ZIBCT) is accredited trainer whist CMAZ have an MoU with CISI Development of Level II of the programme i.e. the Regulatory Assessment module (domestic Laws and regulations) is work in progress ▫ Introduction of the Annual Masterclass First launched in 2016: Prof Rau of Cambridge University’s Centre for Alternative Finance 2017: Prof Mwenda of World Bank 2018: Aute Kasdorp of Supervision Strategy (Netherlands)
8 WHAT HAS SEC BEEN UPTO SO FAR? …c ont’d ▫ Capital Markets Schools Challenge First launched in 2015 Extended to Copperbelt and launched on 23 rd March, 2018 [in collaboration with dealers – brokers and fund managers] ▫ Capital Markets University Essay Competition First launched in 2016 2017/8 launched in November 2017 across the country in all the 69 public and private universities Winners are yet to be announced
9 WHAT HAS SEC BEEN UPTO SO FAR? …c ont’d ▫ Secondary Schools Curriculum Development ▫ Annual Capital Markets Operators Workshops ▫ Professional Engagements – AGMs ▫ Chairman’s breakfast ▫ Media Brief ▫ Investor education – print & electronic media, interactive tool (board game), etc ▫ MoU with Savings Bank Foundation for International Cooperation: Train the trainer programme aimed to provide savings education to targeted groups
10 WHAT HAS SEC BEEN UPTO SO FAR? …c ont’d
11 QUESTIONS
12 BACKGROUND - NFIS ▪ National Financial Inclusion Strategy launched in November 2017 (2017-2022) Vision To have universal access to and usage of a broad range of quality and affordable financial products and services. Overall Objective To achieve a financial inclusion rate of 80% ! Enabling more Zambians to use appropriate savings , credit , payment, insurance and investment services to manage risks, plan for the future, and achieve their goals, and firms will be able to access affordable financing to facilitate innovation and firm growth and create employment.
13 STATUS OF FINANCIAL INCLUSION IN ZAMBIA 59.3% 3% of Zambians ans have access ss to financial ncial produc ucts ts and servi vices es Capital Markets account for <1%
14 HOW DOES SEC/CAPITAL MARKETS FIT INTO THE FINANCIAL INCLUSION AGENDA?? NFIS STEERING COMMITTEE Chaired by ST Composition (PS, BOZ, EMD, BEA, Planning, SEC , PIA, CCPC, Justice) NFIS IMPLEMENTATION COMMITTEE Chaired by Director EMD NFIS SECRETARIAT Composition Directors of BoZ, SEC , PIA,CCPC,ZICTA, Hosted by MoF/BOZ Justice, Working Group Chairs Capital Markets Delivery Financial Insurance Pensions Financial SME, channels Infrastructure Consumer Rural and and Protection Agriculture Digital and Finance Payments Capabilities (PIA) (CCPC) (RUFEP) (BOZ) (BOZ) (PIA) (SEC)
15 Capital Market related activities - NFIS 1. Reduce documentation barriers to product uptake and usage 2. Simplify products using customer-centric design 3. Improve government-supported SME finance approaches 4. Finance agriculture value chain 5. Clarify institutional arrangements and legal mandates for financial consumer protection
16 Capital Market related activities – NFIS …cont’d 6. Improve disclosure practises of financial service providers 7. Improve access to an efficiency of dispute resolution mechanisms for financial consumers 8. Strengthen financial consumer protection supervision 9. Improve business practices of financial service providers 10.Improve data infrastructure for financial inclusion
17 WHAT HAS BEEN DONE SO FAR? ✓ ToRs for Capital Markets Working Group ✓ Capital Markets Working Group constituted Public Sector Private Sector Ministry of Finance Capital Markets Association of Zambia Securities & Exchange Commission Bankers Association of Zambia Pensions and Insurance Authority Lusaka Securities Exchange Public Private Partnership Unit Grofin Zambia Ltd. National Pension Scheme Authority Corpserve Zambia Ltd. Zambia Association of Pension Funds
18 WHAT HAS BEEN DONE SO FAR? ... Cont’d ✓ Improve disclosure practises of financial service providers: Currently in consultation with WB over drafting suggestions for regulations, including templates, and to implement Key Facts Statements (KFSs) for collective Investments Schemes (CIS). ✓ Improve access to an efficiency of dispute resolution mechanisms for financial consumers: i) Issued guidelines on internal handling requirements for financial institutions; ii) MoF in process of recruiting for Tribunal Office holders. SEC part of CCPC’s JWG on consumer complaints. ✓ Strengthen financial capability of consumers: Engagement with MoGE
19 THANK YOU CONTACT US: info@seczambia.org.zm +260-211-222-367
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