SECZIM amends securities law

LIVINGSTONE MARUFU

The Securities and Exchange Commission of Zimbabwe (SECZIM) is amending the Securities and Exchange Act [Chapter 24:25] in a bid to enhance its regulatory powers, safeguard investors, ensure market integrity, and align Zimbabwe’s capital markets with international best practices.

The Act currently establishes SECZIM as the principal regulator of securities exchanges, central securities depositories, securities dealers, investment managers, and other capital market professionals, with the goal of maintaining fair, efficient, and transparent markets.

SECZIM has been pushing for the amendment for more than a decade.

The Commission now says the reforms are urgent if Zimbabwe is to meet the standards of the International Organization of Securities Commissions (IOSCO) and unlock greater investment potential.

“We are amending the Securities and Exchange Act. The Amendment Bill seeks to modernise Zimbabwe’s securities regulatory framework by enhancing the powers of the Securities and Exchange Commission of Zimbabwe (SECZIM), aligning it with international best practices, particularly those of IOSCO. The Bill aims to promote investor protection, market integrity, and financial innovation,” SECZIM chief executive officer Anymore Taruvinga told Business Times.

Taruvinga said the proposed changes will significantly increase the Commission’s effectiveness, extend its authority over capital market players, and bring the legal framework up to speed with developments in the financial services sector.

“The new legislation aims to expand SECZIM’s supervisory scope, provide greater protection for investors, and adopt robust prudential and conduct standards in line with global norms,” he said.

He added that the proposed clauses will also empower the Commission to exercise stronger control over issuers of securities, improve cooperation with both local and international regulators, and introduce civil penalties to deter misconduct in the market.

“In the new Bill, we want to ensure there is regulatory cooperation that improves information sharing and enforcement collaboration with local and foreign regulators. We also want to ensure it enhances mechanisms for investor protection and also introduces further civil penalties to deter misconduct,” Taruvinga said.

As Zimbabwe’s capital markets continue to evolve, the amendment also seeks to widen the scope of regulated products and market participants—such as those involved in the securitisation of commodities, credit rating agencies, and self-regulatory organisations.

“SECZIM would want to see the new Bill build capacity by establishing a Capital Market Institute for training, education, and research. It will also revise Commission membership, appointment procedures, and disclosure obligations; streamlines nomination processes,” Taruvinga said.

The Bill further proposes mandatory disclosure improvements during listing processes, enhanced responsibilities for auditors, stricter accounting and reporting standards, and fair treatment of investors during mergers and takeovers. Additional provisions will improve oversight over misleading advertisements and enforce tighter anti-money laundering and counter-financing of terrorism (AML/CFT) standards.

The reforms will also extend to related legislation, including amendments to the Collective Investment Schemes Act and the Asset Management Act, with the goal of improving due diligence and bolstering investor safeguards across the board.

The Bill will formally rename the Commission in Section 3—from “Securities Commission” to “Securities and Exchange Commission of Zimbabwe”—and amend Section 5 to increase the minimum and maximum number of commissioners, while ensuring representation from the legal and accounting professions.

It will also address the structure of fees and levies imposed on securities exchanges and other capital market participants, potentially including new provisions allowing charges in foreign currency where appropriate.

These legislative updates are a cornerstone of SECZIM’s 2021–2025 Strategic Plan, which positions the Commission as an independent apex regulator tasked with promoting, developing, and regulating Zimbabwe’s capital markets to support economic transformation and sustainable growth.