BUSINESS REPORTER
The Securities Exchange Commission of Zimbabwe (SECZ) has lifted the suspension of stockbroker Benson Gasura after an investigation cleared him of unethical conduct.
Gasura was in October suspended for six months to facilitate investigations of unethical conduct in terms of section 49 (1) (a) of the Securities and Exchange Act [Chapter 24:25]. In a notice yesterday, SECZ chief executive officer Tafadzwa Chinamo said the investigation had been completed.
“Notice is hereby given that the investigation of FBC Securities’ continued possession of unclaimed shares, in contravention of SECZ Directives dated August 29, 2012, and January 25, 2013, has been completed,” Chinamo said.
“The suspension of Mr. Benson Gasura’s securities dealing licence to facilitate an investigation in terms of Section 49 (1) of the Securities and Exchange Act [Chapter 24:25] (“the Act”), is hereby lifted with immediate effect.”
The suspension prohibited Gasura from carrying out any licensable activities from October 7. In July 2019, SECZ investigated the discovery of 693 unclaimed share certificates in FBC Securities (Private) Limited’s possession.
Such possession contravened SECZ’s Directives of August 2012 and January 25, 2013, which prohibited Securities Dealing firms from holding clients’ share certificates for a period exceeding 30 days.
Any unclaimed share certificates were to be submitted to ZB or Old Mutual Custodial Services.
The capital markets regulator said despite being given several notices, FBC Securities continued to be in full contravention of these directives for seven years and only recently made an attempt to deliver the unclaimed shares certificates to the Investor Protection Fund in 2019.
The delay in delivery created suspicion and warranted an investigation by SECZ.
The investigations objectives included determining the quantity and value of shares held by FBC Securities in custody, the historical trail and legality of all share movements and transfers pertaining to the share certificates and the distribution of dividends and other entitlements that accrued to the securities that are being held by FBC Securities.
Its objective was to determine the extent of loss and potential prejudice suffered by shareholders as a result of FBC Securities delinquent behaviour.
This led to the suspension of Gasura to facilitate investigations by PKF Chartered Accountants and Advisers who were hired by SECZ as forensic auditors.
The investigation findings were that all share movements were legal and supported by appropriate documentation, dividends were correctly distributed, and any dividends not distributed to shareholders are still being held in trust by the Transfer Secretaries.
It established that no loss or prejudice was suffered by shareholders as a result of FBC Securities misconduct.
“Taking note that no prejudice was suffered, the Commission has issued a Corrective order to immediately lift the suspension of Mr. Benson Gasura’s securities dealing licence and to remedy a number of internal policies and practices that led to its demise in this instance,” Chinamo said.
SECZ ordered FBC Securities to relinquish all unclaimed share certificates after 30 days of receipt of the Corrective Order, within which they are expected to reconcile shareholders with their share certificates.
Investors who may have given custody of their share certificates to FBC Securities and never collected them from 2012 to date are encouraged to contact FBC Securities to verify the status of their share certificates.
