The Ministry of Finance and Economic Development has suspended the implementation of the new Statutory Instrument 103A of 2022 with effect from 1 June 2022.
The measures were issued by Finance and Economic Development Minister, Mthuli Ncube, last week to operationalise policy measures to block speculative trading in the market, especially in the equities and currency markets. SI 103A of 2022 read in part:
Where a holder of a securities dealer’s licence receives funds in his or her trust account from a person (“non-client”) who is not registered with him or her as a client, the holder shall (whether or not the identity of the non-client is known to him or her) immediately report that fact to—the Financial Intelligence Unit (FIU) and the relevant exchange.
However, in a public notice issued on 31 May 2022, Zimbabwe Stock Exchange Limited (ZSE) Chief Executive Officer Justin Bgoni said that the operationalisation of the regulations has been suspended.
Treasury informed the ZSE that there were errors in some parts of SI 103A of 2022 which they need to correct. Reads the notice:
PUBLIC NOTICE SUSPENSION OF IMPLEMENTATION OF STATUTORY INSTRUMENT 103A of 2022
The Zimbabwe Stock Exchange Limited “ZSE” wishes to bring to the attention of stakeholders that the implementation of the new Statutory Instrument 103A of 2022 (Securities (Registration, Licensing and Corporate Governance) Rules, 2022 (No. 4)) has been suspended with effect from 1 June 2022 until further notice.
This suspension has been done at the instance of the Ministry of Finance and Economic Development, who undercover of a letter dated 31 May 2022, has informed the ZSE that there were errors in some parts of said statutory instrument which they need to correct.
Therefore, stakeholders are advised to operate on the basis of Statutory Instrument 72 of 2022: Securities (Registration, Licensing and Corporate Governance) (Amendment) Rules, 2022 (No. 3) until further notice.
However, kindly take note that trades executed between 27 and 31 May 2022 will be levied on the basis of SI 103A of 2022.