Regulatory Alerts2020-01-16
Graduated Fines Framework
The Capital Markets Commission establishes a structured penalty schedule to enforce compliance with the Accounting and Financial Requirements Rules and CIS Rules. The framework imposes escalating fixed fines ranging from ZMW3,000 to ZMW150,000 based on whether the violator is a first, second, or perpetual offender, alongside daily additional charges for continuing contraventions. Perpetual offenders face a maximum fine of ZMW150,000 and may be subject to Market Misconduct Proceedings before the Capital Markets Tribunal if prior maximum fines have been applied.
Graduated Fines Framework 1
Graduated Fines Framework 2 OFFENCE PENALTY FOR FIRST OFFENDER PENALTY FOR SECOND OFFENDER PENALTY FOR PERPETUAL OFFENDER (THIRD OFFENDER AND ABOVE) ADDITIONAL PENALTY FOR PERPETUAL OFFENDERS Failure submit confirmation in writing as required under Rule 16(2)(b) of the Accounting and Financial Requirements Rules ZMW3,000 Failure to comply with Rule 18 ZMW3,000 Failure submit separate Auditor’s report in accordance with Rule 16(2) of the Accounting and Financial Requirements Rules ZMW3,000
Graduated Fines Framework 3
Graduated Fines Framework 4 OFFENCE PENALTY FOR FIRST OFFENDER PENALTY FOR SECOND OFFENDER PENALTY FOR PERPETUAL OFFENDER (THIRD OFFENDER AND ABOVE) ADDITIONAL PENALTY FOR PERPETUAL OFFENDERS Failure to publish the latest offer and redemption prices and net asset value of the scheme in accordance with clauses 51 & 52 of the schedule to the CIS Rules. Fine of ZMW10,000 Additional fine of ZMW100 for each day for which the contraventio n continues Fine of ZMW30,000 for an offender that had not submitted the annual report for any of the previous financial years An additional fine of K200 for each day for which the contravention continues Fine of ZMW150,000 for offenders who have not filed more than two annual reports within the stipulated timeframe or have filed in more than two annual reports outside the stipulated timeframe. Additional fine of K300 for each day for which the contravention continues Maximum fine of 150,000 Where the Commission has previously fined the offender the maximum fine, the Commission may Institute Market Misconduct Proceedings before the Capital Markets Tribunal
Graduated Fines Framework 5 OFFENCE PENALTY FOR FIRST OFFENDER PENALTY FOR SECOND OFFENDER PENALTY FOR PERPETUAL OFFENDER (THIRD OFFENDER AND ABOVE) ADDITIONAL PENALTY FOR PERPETUAL OFFENDERS Failure to be a member of an association of Capital Markets Operators Fine of ZMW10,00 0 for corporates Fine of ZMW3,000 for individuals Fine of ZMW10,000 for corporates Fine of ZMW3,000 for individuals Fine of ZMW10,000 for corporates Fine of ZMW3,000 for individuals Fine of ZMW10,000 for corporates Fine of ZMW3,000 for individuals