Background

The Uganda Capital Markets Authority (CMA) is a semi-independent Government funded body established under The Capital Markets Authority Statute 1996 and is charged with the development and regulation of the capital markets industry in Uganda. It oversees the activities of the Uganda Securities Exchange and licenses all other market participants and professionals. In addition to these activities, it is charged with the promulgation of regulations to govern capital market activities and the development of long-term sources of capital.

CMA's priority is now to implement the Collective Investment Schemes (CIS) Act and pave the way for the licensing and approval of schemes, fund managers, trustees and all other intermediaries required under the CIS Act. In addition, CMA will need to advise the government on CIS aspects that should be included in its financial sector strategy, to ensure that there is a comprehensive and cohesive long term support for growth and sustainability of the CIS sector. However CMA does require support to achieve its CIS goals in accordance with best international practice. This project will provide the experience and assist the CMA build the capacity to license and regulate the market.

Project

The project goal is the development and deepening of the capital market in Uganda.

The project purpose is supporting the implementation of the CIS legislation in Uganda.

Phase1

Development of the regulatory framework:
1.Reviewing the rules and regulations under the CIS ACT including, inter alia, regulations for licensing and approving unit trusts, open-ended investment companies, financial and accounting requirement; the consultants will ensure that these licensing regulations are consistent with those in Kenya and Tanzania to facilitate eventual regional integration
2.Providing comments on the appropriateness and suitability of the proposed rules and regulation for CIS

Once the CMA and FIRST have accepted the comments made by the consultants, CMA will undertake to make the amendments to the rules and regulations within 3 months. Phase 2 will commence after CMA's undertaking has been received.

Phase 2

Fact finding mission:
1.Undertake a fact finding mission to assess the assistance needed during the licensing process, assess current regulatory practice in relation to other regulated entities, assess CMA capacity and identify training needs
2.Meet with potential practitioners (fund managers, trustees or depositories, auditors) to assess possible entrants and their knowledge and resources
3.Meet with representatives of the Government and interested parties to discuss the way forward for CIS

Assistance during the licensing process:
1.Providing advice and mentoring CMA during the licensing and implementation process; this will be done principally on a remote basis through email, telephone, post, etc.
2.Developing guidance notes for regulations to assist with the practical application of the regulations
3.Developing internal procedure manual for CMA staff that will cover licensing, compliance monitoring including review of off-site returns and on-site monitoring
4.Providing training to CMA staff in preparation for the task of evaluating, approving, licensing and regulating CIS schemes and market participants

Project preparation for action plan/strategy for CIS:
1.Discuss with CMA, the relevant members of the Ugandan Government, current and likely CIS market participants the potential of the CIS industry
2.Identifying issues relating to the development of CIS industry that will need to be included in the Government' financial sector strategy
3.Prepare TORs and project background material, including costings, for the development of a strategy and action plan for the CIS industry in Uganda

Phase 3
Develop, in conjunction with CMA and the Government, the strategy/action plan for development of CIS industry in Uganda. In addition, develop a comprehensive capacity building strategy and action plan for the CMA consistent with the industry development strategy. This Phase will be undertaken only after the rules and regulations have been amended as per the decision made at the end of Phase 1. This Phase will be the subject of a supplemental submission for approval.

Project Documents

Project Completion Summary
(121KB)

  Back  |    Top of page