Regulatory Alerts2020-10-14
Directive on Nominee Requirements for Securities Market Intermediaries – April 2018
The Securities and Exchange Commission of Zimbabwe issued this April 2018 directive to authorize licensed Securities Market Intermediaries to own and operate nominee companies while mandating strict compliance with Know Your Client procedures, segregated client funds, and robust risk management systems. The directive requires intermediaries to maintain accurate daily reconciliations with Central Securities Depositories, preserve nominee records for ten years, and secure adequate insurance and capitalization to protect client assets from unauthorized access or misappropriation. Replacing the 2014 directive, it establishes clear operational boundaries for nominees, including prohibitions on changing ownership structures or incurring external liabilities without commission approval, and grants the Commission authority to revoke operations for non-compliance.