SECZ simplifies securities trading requirements

Business Reporter
THE Securities and Exchange Commission of Zimbabwe (SECZ) has announced simplified know your customer (KYC) requirements for investors intending to participate in the capital market in the country.

The move, according to the regulator, is meant to promote financial inclusion, ease of doing business and growing the securities market.

SECZ chief executive officer, Mr Tafadzwa Chinamo, said that the new measure was meant to promote participation of the general public on the local capital market.

“This will be achieved through promotion of online and mobile trading and settlement of securities transactions before the end of the third quarter of 2017,” he said in a statement addressed to the securities market intermediaries and the investing public.

The documents required for opening a securities trading account with an asset manager, securities dealer such as a stockbroker, a custodian or Central Securities Depository (CSD) have been reduced to just a national identity card and a completed securities trading account opening form for both local investors and Zimbabweans in the diaspora.

For foreigners, the requirements are now a valid passport in addition to the completed securities trading account form.

Local and foreign companies now require a certified copy of certificate of incorporation, a board resolution, national ID card or valid passport for signatories and a completed securities trading account opening form.

The new KYC requirements have been approved by the Reserve Bank of Zimbabwe’s Bank Use Promotion and Suppression of Money Laundering Unit, are with immediate effect.

Investors were being encouraged to contact their securities dealers or stockbrokers, Chengetedzai Depository Company, the Zimbabwe Stock Exchange (ZSE), the Financial Securities Exchange (FINSEC) or the Commission for more information on the changes.