RegAlert2019-12-11
Added · Updated
Commodity Exchanges Regulations 2016
These Regulations establish licensing criteria, application procedures, and verification processes for commodity exchanges and market intermediaries, requiring decisions within 45 days and imposing a 25,000 shilling daily late renewal penalty. They mandate compensation deposits or professional indemnity insurance for brokers and dealers, while defining grounds for license refusal, suspension, and revocation with specific hearing rights. Licensees must maintain detailed transaction records for at least 10 years, submit audited financial statements within three months of the financial year ending June 30, and deposit client funds into designated trust accounts with strict withdrawal limitations.
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Commodity Exchanges
GOVERNMENT NOTICE NO. 146 published on 29/4/2016
THE COMMODITY EXCHANGES ACT
(ACT NO. 19 OF 2015)
REGULATIONS
(Made under section 7 (4) and 86
THE COMMODITY EXCHANGES REGULATIONS, 2016
PART I
PRELIMINARY PROVISIONS
Citation 1. These Regulations may be cited as the Commodity Exchanges Regulations, 2016.
Application 2. These Regulations shall apply to commodity exchanges and commodity market intermediaries.
Interpretation 3. In these Regulations, unless the context requires otherwise- Act No: 19 of 2015 "Act" means the Commodity Exchanges Act; Cap. 79 "Authority" means the Capital Markets and Securities Authority established under section 6 (1) of the Capital Markets and Securities Act; "Board" means the members of the Authority appointed in accordance with section 6 (3) of the Capital Markets and Securities Act; "Commodity Exchange" has the meaning ascribed to it in the Act; "License" means a license granted pursuant to the provisions of Part III and IX of the Act; "Market intermediary" has the meaning ascribed to it in the Act; "Tribunal" means the Capital Markets Tribunal established under the Capital Markets and Securities Act;
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PART II
ELEGIBILITY CRITERIA AND APPLICATION PROCEDURE AND PROCESS
Licensing criteria 4.-(1) The criteria set out by the Act in Part III with respect to Commodity Exchanges and Part IX with respect to commodity market intermediaries shall be complied with by applicants before the Authority considers approving an applicant as an exchange or market intermediary as the case may be. (2) The Authority shall exercise discretion as to the application and interpretation of the criteria, as it deems fit and may, by way of guidelines or circulars provide guidance on the interpretation and application of any criteria.
Application Procedure 5.-(1) An application for licenses or renewal of a licence under the Act shall be made by completing and submitting to the Authority the following forms set out in the First Schedule:
(a) Form No. 01 for commodity exchanges;
(b) Form No. 02 for Commodity Broker’s or Commodity Dealers Licence; (c) Form No. 3 for Commodity Trading Advisor’s Licence; (d) Form No. 4 for renewal of Licences; (e) Form No. 5 for a Representative Licence; (f) Form No. 6 for Renewal of a Representative Licence (2) The applications shall also be accompanied by - (a) all supporting documentation and annexures requested in the Forms; (b) proof of payment of the application fees as may be prescribed by the /Authority from time to time. (3) The Authority may request any other information, documentation or confirmations from the applicant or other persons as it may require in considering the application.
Evaluation of applications 6.-(1) The Authority shall, upon receipt of the application, review the application to satisfy itself on the applicant’s compliance with the eligibility criteria and other requirements of the law. (2) The Authority shall consider an application and inform
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the applicant of its decision within 45 days.
(3) Where it is found during the review of the application that the applicant has not provided sufficient information to enable the Authority make specific recommendation, the Authority may write to the applicant requesting for further information. (4) In the event that the Authority has invoked the provisions of sub regulation (3), the time specified in sub-regulation (2) shall be reckoned from the date the complete application is submitted to the Authority. (5) Before determination of the application, the applicant who has complied with the eligibility criteria and other licensing requirements, shall be subjected to the following verification process:
(a) previous financial fraud or criminal record verification by the relevant government authority by submitting the names and other forms of identification to the office of the Director of Criminal Investigations of all individuals including the directors and principal officers intended to carry out the business for which the licence is sought; (b) on-site inspection of the applicants place of business to be conducted by the Authority with a view to verifying the applicant’s compliance with the licensing criteria and requirements stipulated in the Act. (6) The reports of the verification process referred to in sub-regulation (5) shall be the basis for the recommendation to grant the licence or decline the application. (7) The Authority shall determine whether or not to grant the licence taking into consideration the recommendation of the verification processes in sub-regulations (1) and (5).
Grant of licences 7. Subject to the provisions of the Act with regard to grant of licences, a commodity broker’s licence, commodity dealer’s licence, commodity trading adviser’s licence or commodity pool operator’s licence shall be granted if the applicant meets the minimum financial requirements prescribed by the Authority for the relevant category of business undertaken the licensee.
Grant of representative’s licence 8.- (1) A representative’s licence shall be granted only to a natural person.
(2) The Authority shall grant or renew a representative’s
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licence if after consideration of the application; it is satisfied that the applicant shall perform the duties of the holder of representative’s licence, efficiently, honestly and fairly. (3) The licences issued by the Authority shall be in the form set out in the Second Schedule.
Refusal of grant of licences 9.-(1) Where an application is duly made for the grant or renewal of licence, the Authority may refuse the application if- (a) in the case of an applicant who is a natural person- (i) the applicant has been adjudged bankrupt:
(ii) the applicant has been convicted in Tanzania or elsewhere of an offence involving fraud or dishonesty punishable on conviction with imprisonment for a term of three months or more; (iii) the Authority is not satisfied as to the educational qualifications set out in Part B of the First Schedule or experience of the applicant having regard to the nature of the duties of a holder of a licence; (iv) the applicant is not of good reputation or character; or (v) the Authority is satisfied that the applicant will not perform the duties of a holder of a licence, efficiently, honestly and fairly; (b) in the case of an applicant that is a body corporate- (i) the body corporate is in the course of being wound up; (ii) the body corporate is one in respect of which a receiver, or a receiver and manager, has been appointed; (iii) the body corporate has, whether in or outside Tanzania, entered into a compromise of scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation; (iv) the Authority is not satisfied as to the educational qualifications or experience of the officers in the application who are to perform duties in connection with the holding of the
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licence; or
(v) the Authority has reason to believe that the applicant will not perform the duties of a holder of a licence, efficiently, honestly and fairly.
(2) The Authority shall not refuse to grant or renew a licence without first giving the applicant or the holder of the licence an opportunity of being heard.
Compensation Deposit 10.-(1) The Authority shall not grant or renew a broker’s, or dealer’s licences unless a compensation deposit or in the case of Commodity Trade Advisers and Commodity Pool Operators, a professional indemnity guarantee or insurance prescribed by the Authority in respect of the licence is lodged with the Authority at the time of the application for the licence. (2) A deposit required under subsection (1) shall be - (a) in cash or in such other form as the Authority may in any particular case direct; (b) deposited in an account to be designated by the Authority; (c) applied by the Authority subject to and in accordance with the investors’ compensation fund guidelines or regulations made by the Authority.
Refund of deposit 11. A deposit made under Regulation 10 shall be refunded to an applicant immediately after the application for a dealer’s licence is refused.
Application of deposit 12. A deposit made under Regulation 10 may be invested by the Authority in a manner the Authority deems appropriate provided that fifty five per cent of income earned by such investment after deduction of taxes due in accordance with the laws of Tanzania shall be retained by the Authority on behalf of a dealer.
Operation pending renewal and penalty for late submission 13.-(1) Where a person who holds a licence issued under the Act applied for a renewal of the licence within the period prescribed for renewal of licence, and the licence expires before the grant of renewal or refusal or withdrawal of the application as the case may be, the licensee shall, until the licence is renewed or the application for the renewal of the licence is refused or withdrawn, be deemed to continue to be valid.
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(2) Subject to Section 41(3) of the Act providing for licence tenure and renewal, an application for renewal of a licence shall be made not later than one month before the expiry of the licence. (3) An application for licence renewal made beyond the time prescribed in sub regulation (2), shall be subject to a late submission penalty of twenty five thousand shillings for each day the application is delayed.
Notification of change of particulars 14.-(1) Where- (a) the holder of a licence ceases to carry on the business to which the licence relates; or (b) the holder of a representative’s licence ceases to be a representative of the commodity broker, commodity dealer, commodity trading advisor or pool operator in relation to whom the representative’s licence was issued; or (c) a change occurs in any matter, particulars of which are required to be entered in the register of licence holders in relation to the holder of a licence, such holder of a licence shall, not later than fourteen days after the occurrence of the event concerned, submit in writing to the Authority, particulars of the event concerned. (2) The notice of cessation of business shall be as set out in Form No: 9 set out in the First Schedule. (3) Any other change as referred to in sub regulation (1) (c) shall be as set out in Form No: 10 set out in the First Schedule.
Suspension procedure and effect thereof 15.-(1) Where the Authority has made a decision to suspend a licence pursuant to sections 46 and 47 of the Act, it shall write to the defaulting licensee to inform him of the Authority’s decision including the reasons for the decision. (2) A licence suspension shall have immediate effect from the date the Authority notifies the defaulting licensee pursuant to sub regulation (1) of this regulation. (3) Where a licence is suspended, it shall remain suspended until the matter that the licence holder has been suspended with has been finally determined and the licensee is found not liable. (4) The Authority shall monitor the suspended licencee on a continuous basis and if, the Authority deems that it is in the public interest to revoke it, a suspended licence shall be revoked.
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(5) A suspended licence may be revoked by the Authority in accordance with the provisions of regulation 16.
Revocation procedure 16.-(1) The Authority shall, upon the occurrence of one or more of the circumstances referred to in sections 33 and 34 of the Act and the reasons for the decision to revoke; (a) notify the defaulting licensee in writing, indicating the breach in question, the intention to revoke the licence and the reasons for the decision to revoke; (b) prepare a report for approval of the Board detailing the prevailing situation at the last known physical address including any infrastructure, personnel in place, or anything that would reasonably indicate that operations are taking place. (2) The defaulting licensee shall, have 14 days from the date of receipt of the notification under sub regulation (1) of this regulation to provide a response. (3) Where the Authority does not receive a response from the defaulting licensee within the period specified in sub regulation (2), the decision to revoke the licence shall automatically take effect and the Authority shall write to the defaulting licensee informing them of the Authority’s final decision. (4) A notification under sub regulation (1) of this regulation, shall be in Form No.1 set out in the Third Schedule and shall- (a) be signed by the Chief Executive Officer of the Authority or any other officer designated by the Chief Executive Officer; (b) advise the licensee on how the hearing will be conducted in accordance with the rules governing hearings before the Hearing Panel or Committee set out in the Fourth Schedule.
Hearing 17.-(1) The Authority shall conduct a hearing and a decision as to whether the reasons given by the defaulting licensee have been accepted by the Authority shall be delivered within 14 days from the date of the hearing. (2) Where the Authority is of the view that the reasons given
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were not reasonable as to convince it not to revoke the licence, the Authority shall notify the defaulting licensee of its decision to revoke which shall take effect on the date prescribed in the notice of revocation.
Form of notice of revocation 18. The Notice of revocation shall be as set out in the Fifth Schedule.
Decision of the authority is not reversible 19. Where the Authority makes a decision it shall not revisit that decision, notwithstanding the mitigation or obvious factual error, without the direction of the Tribunal.
PART III
ACCOUNTS AND AUDIT
General compliance with maintenance of accounts and records 20. Every licensee shall comply with all relevant laws, including the Act, these Regulations and guidelines issued by the Authority from time to time or any requirements, notifications, directives and guidelines issued by the Government and any statutory body or local authority relating to maintenance of accounts and records.
Annual Accounts and Audit 21.-(1) Subject to section 56 (2)and 6 of the Act in relation to maintenance of books of accounts and records each licensee shall prepare annual accounts for each financial year ending on 30th June or such other date as prescribed by the Authority. (2) The assets and liabilities of the licensee’s business shall be brought into account in the balance sheet at such amounts and shall be classified and described therein in such manner that the balance sheet gives a true and fair view of the state of affairs of such business as at the date to which it is made up. (3) Each licensee shall furnish to the Authority its audited financial statements and such report shall be furnished not later than three months after the end of the licensee’s financial year. (4) Where the Authority is satisfied that circumstances warrant an extension of time for submission of the financial statements required under this section, it may grant extension of time for submission of the financial statements as it may deem fit.
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Annual Report 22. Subject to Section 62 of the Act requiring intermediaries to prepare and submit to the Authority financial statements within three months after the end of financial year, all market intermediaries shall also prepare and submit an Annual Report that includes:
(a) description of the activities undertaken by the intermediary in the financial year; (b) resources available including financial, human and technological; (c) an analysis of the extent to which an intermediary considers that the activities undertaken and resources used have resulted to revenue generation or growth.
Maintenance of records for commodities trading 23.-(1) Every licensee shall maintain the following records for a period of not less than 10 years either in hard form or non-temperable soft form relating to books of accounts, records and documents in respect of its business:
(a) statements of funds and commodity obligations received from the clearing house.
(b) records in respect of premium or discount and final settlement amounts including taxes and charges on commodities of clients; (c) records in respect of commissions collected separately from clients; (d) register of transactions or other records of original entry containing an itemized daily record of all purchases and sales of commodities or contract, showing for each transaction effected, the name of commodities, value of commodities, rates both gross and net of brokerage and name of client; (e) register or ledger account of commodities, client wise and commodity wise, providing, inter alia, the details set hereunder and a separate register or ledger in respect of its own:
(i) date of receipt of the commodity;
(ii) quantity received;
(iii) party from whom received;
(iv) purpose of receipt;
(v) date of delivery of the commodity;
(vi) quantity delivered;
(vii) party to whom delivered;
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(viii) purpose of delivery.
(2) A person who contravenes sub regulation (1) commits an offence under the Act.
(3) For the purpose of better internal control and management, every licensee who is a member of a commodity exchange shall, maintain the following records relating to its business:
(a) order confirmation slips, order modification slips and trade confirmation slips as obtained from the trading system of the Exchange; (b) record of all statements received from the settling agencies and record of all correspondence with them; (c) Order Book reflecting the following:
(i) identity of person receiving the order;
(ii) date and time of order received;
(iii) name of person placing the order;
(iv) name of client, description and value of commodities bought or sold; (v) terms and conditions of the order stating particularly price or rate limit or price or rate related instructions and time limit on the order (if any); (vi) the trading system order number as per the trading system of the commodity exchange or trading member order number as the case may be; (vii) any modification or cancellation thereof including cases when it is cancelled by the system or cancelled due to maturity of an instrument; (viii) if executed, the price or rate at which executed and to the extent feasible, the time of execution or cancellation and trade number as per the trading system of the Exchange; (ix) reference number of the contract issued in case of executed orders; (x) orders entered pursuant to the exercise of discretionary power shall be so designated; (xi) serially numbered entries of orders;
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(xii) reports produced from the trading system; and (xiii) copies of all instructions obtained in writing from client including participants for an order placement, order modification, order cancellation or trade cancellation. (4) Every licensee shall keep such books of accounts, as will be necessary, to show and distinguish, in connection with its business the moneys- (a) received from or on account of and moneys paid to or on account of each of his clients; and (b) paid on trading member’s own account. (5) Subject to section 60 (2),(3),(4)(a) and (7) of the Act, where a person, in this section referred to as "the client", deposits money withthe licensee, that licensee shall- (a) deposit the money in a trust account in a bank, not later than the next day on which the bank is open for business after the receipt of the moneys and the account shall not contain any money other than money deposited with or lent to the licensee; (b) furnish to the client a receipt or other documentary evidence, setting out the terms and conditions on which the deposit or loan is made and accepted, including the purpose for which and the manner in which the money is to be used by the dealer; (c) retain the money in the bank account until the client gives him a written statement acknowledging that the client has received the document referred to in paragraph (b); and (d) use the money only- (i) for the purpose and in the manner set out in the document referred to in paragraph (b); or (ii) for any other purpose or in another manner agreed to by the client in writing after the document referred to in paragraph (b) was furnished to the client. (6) No payment for transaction in which the trading member is taking a position as a principal will be allowed to be made from the trust account. (7) The transfer from trust account to the licensee’s account
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shall be allowed for discharging the obligation to pay money into "clients account" where every trading member who holds or receives money on account of a client shall forthwith pay such money to current or deposit account at a bank to be kept in the name of the member in the title of which the word "clients" shall appear and shall be referred to as "Trust Account. (8) A licensee may keep one consolidated clients account for all the clients or accounts in the name of each client, as he thinks fit provided that when a trading member receives a cheque or draft representing in part money belonging to the client and in part money due to the licensee, he shall pay the whole of such cheque or draft into the clients account and effect subsequent transfer. (9) Money shall not be paid into a trust account other than- (a) money held or received on account of clients; (b) such moneys belonging to the licensee as may be necessary for the purpose of opening or maintaining the account; (c) money for replacement of any sum, paid or drawn from the account by mistake or accident; (d) a cheque or draft received by the licensee representing in part money belonging to the client and in part money due to the licensee. (10) No money shall be drawn from clients account other than- (a) money properly required for payment to or on behalf of clients for or towards payment of a debt due to the licensee from clients or money drawn on client’s authority, or money in respect of which there is a liability of clients to the trading member, provided that money so drawn shall not in any case exceed the total of the money so held for the time being for such each client; (b) such money belonging to the licensee as may have been paid into the client account which may have been made paid into such account by mistake or accident. (11) Nothing in this regulation shall deprive a licensee of any recourse or right, whether by way of lien, set-off, counter-claim charge or otherwise against moneys standing to the credit of clients account. (12) Every licensee shallsend to its clients a complete
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‘Statement of Accounts’ of a period not exceeding six months for both funds and titles to commodities within a month of the expiry of the said period.
(13) The statement referred to in sub regulation (12), shall require the client to report errors, if any, in the statement within 14 days of receipt thereof.
Ledger account in respect of the transactions on the Exchange 24. The trading licensees shall keep separate ledger account for each client in respect of the transactions on the Exchange and shall separate such account from the account of the client in respect of transactions of any other exchange or any other transaction, which the trading licensee may enter into with such client.
Maintenance of other records 25.-(1) Every licensee shall maintain copies of-.
(a) agreements executed with each of its client, clearing and settlement agencies or banks; (b) records of all relevant particulars of persons; (c) originals of all communications received and copies of all communications sent by such trading member including interoffice memo and communications relating to its business; (d) all guarantees of accounts and all powers of attorney and other evidence of the granting of any discretionary authority given in respect of any account; (e) copies of resolutions empowering an agent to act on behalf of a licensee; (f) all written agreements or copies thereof, entered into by that licensee relating to its business as such, including agreements with respect to any account. (2) Every licensee shall preserve for a period of not less than seven years after the closing of any client’s account any records which relate to the terms and conditions with respect to- (a) the opening and maintenance of such account; (b) date of entering into agreement with the client; (c) date of modification thereof; (d) date of termination; (e) representatives of such client who signed in each case. (3) A licensee shall intimate to the Authority the place where these records are kept and made available for audit or inspection.
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(4) The requirements relating to maintenance of records in this section shall apply not only to records of the licensee’s principal office but also to those of any branch office and to any nominee company owned or controlled by a trading member for the purpose of conducting the business of the trading member. (5) Each licensee shall keep and preserve a record of all written complaints of its clients indicating the following aspects:
(a) the reference number of client;
(b) date;
(c) client’s name;
(d) particulars of the complaints;
(e) action taken by the trading member;
(f) if the matter is referred to arbitration to the commodity exchange, the Authority or the Tribunal, then the particulars thereof.
(6) Every trading member shall maintain details of titles to the commodities which are the property of a trading member showing with whom they are deposited and if held otherwise than by the member, whether they have been lodged as collateral security for loans or advances. (7) Every trading member shall keep copies or duplicates of contract notes issued by the trading member and details of any particulars, which are required by these regulations to appear on contract notes.
PART IV
CONDUCT OF BUSINESS OF LICENSEES
Application of capital markets conduct of business regulations G.N. No: 771 of 1997 26. The Capital Markets and Securities (Conduct of Business) Regulations, 1997, shall apply mutatis mutandis to all licensees under the Act or these Regulations and reference in the said Regulations to dealers or investment advisers shall be construed as commodity broker, dealers or commodity trading advisers respectively.
Contract Note 27.-(1) In addition to the requirements of the Capital Markets and Securities (Conduct of Business) Regulations, 1997, every licensee under the Act and these Regulations shall issue a contract note to his clients for services performed containing all
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relevant details necessary to enable the Authority or any person ascertain the nature of relationship entered or the terms and conditions of the transaction entered into.
(2) A contract note shall be signed by the licensee or his authorized signatory or Attorney.
(3) The contract notes shall be numbered with unique running serial number commencing from one, which shall be set only at the beginning of every financial year.
(4) Where separate series are maintained in respect of different trading offices of the licensee, the respective office name or code shall be mentioned on the contract note.
(5) The contract note shall be time stamped with the time of receipt of order and the time of execution of order.
Commissions 28.-(1) All the orders entered by a commodity broker or commodity dealer shall be at prices exclusive of commissions.
(2) A licensee shall charge commissions at rates not exceeding such rates as the Authority may from time to time prescribe.
(3) A licensee shall charge commission separately to their clients and this shall be indicated separately from the price, in the contract note.
Office Premise 29.-(1) A licensee shall not carry on any activity connected with or pertaining to its operations in any office or premises, the full address of which has not been intimated to the Authority. (2) Each office or department and the personnel shall be under the supervision and control of the licensee. (3) Each licensee shall at all times maintain such infrastructure, staff, communication facilities and records so as to be able to service its clients satisfactorily and as per the requirements of these Regulations or any other relevant law in force for the time being.
Client agreements 30.-(1) A licensee shall enter into an agreement with each of his clients, before accepting or placing orders on the clients behalf and such agreement shall include provisions set out in the Sixth Schedule. (2) The Authority may categorize clients into such types as
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may be necessary for the purposes of the provisions of sub regulation (1) and specify the clauses to be included in agreements to be entered into depending on the category of such client.
Compliance with Anti-Money Laundering Act Cap. 423 31.-(1) When establishing a relationship with a new client, a licensee shall take reasonable steps to ensure compliance with the Anti-Money Laundering Act and shall assess the background, genuineness, financial soundness of such person and his investment objectives as illustrated in the Seventh Schedule. (2) Subject to sub regulation (1), where alicensee enters into a relationship with corporate clients he shall obtain an approved copy of the Board resolution permitting trading on commodity contracts. (3) Where a relationship referred to in sub regulation (1) concerns an unincorporated body, the licensee shall obtain the relevant authorization from the said unincorporated body depending on the procedures of approval of that unincorporated body.
Certain disclosures to clients 32.-(1) A licensee shall make the client aware of the precise nature of the licensee’s liability for business to be conducted, including any limitations on that liability and the capacity in which the licensee acts and the clients liability thereon. (2) A licensee shall make the client aware of the risk associated with the business in commodities trading including any limitations on the liability and the capacity in which the licensee acts and the client’s liability thereon by issuing to the client a copy of the ‘Risk Disclosure Document’ as specified in the Eighth Schedule. (3) Subject to sub regulation (2), A licensee shall ensure that a client acknowledges receipts of the document referred to in the said sub regulation (2). (4) A licensee shall, at no cost-. (a) provide extracts of relevant provisions governing the rights and obligations of clients to the extent it governs the relationship between licensee and the client; and (b) make adequate disclosures to the relevant material information in its dealing with his Clients’. (5) A licensee shall bring to the notice of its clients, any indictments or penalties imposed on him by the Authority, Exchange
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or any other regulatory authority.
(6) A licensee shall make adequate disclosures of relevant material information in dealing with the client including the current best price of trade or order quantities on the commodity exchange, any allocation policy inter se clients, any relevant announcement from the commodity exchange relating to margin, trading restrictions as to price, quantity or where the licensee is the counter party to a trade executed on the trading system with the client.
Prohibition of Certain practices 33.-(1) No licensee or person associated with the licensee shall guarantee a client against loss in any commodities transactions effected by the licensee with or for such client. (2) A licensee shall not recommend to its clients a sale or purchase of commodities contracts traded on the commodity exchange, unless it has reasonable grounds to believe that such recommendation is suitable for the client on the basis of the facts disclosed by the clients, whether in writing or orally, regarding the client’s commodity holdings, financial soundness and investment objectives. (3) The licensee shall not furnish any false or misleading information or advice with a view to inducing the clients to do business in particular commodity contracts which shall enable the licensee to gain thereby.
Placement and Modification of Orders 34.-(1) The licensee shall explain the trading system and order matching process to the client before accepting any orders from him.
(2) Where the client requires an order to be placed or any of his order to be modified after the order has entered the system but has not been traded, the licensee may, obtain order placement or modification details in writing from the client and accordingly provide the client with the relevant confirmation or modification slip or copy thereof. (3) Where the client requires any of his orders to be cancelled after the order has been entered in the system but has not been executed, the licensee may obtain the order cancellation details in writing from the client and accordingly provide the Client with the relevant order cancellation details. (4) The licensee shall obtain in writing the delivery and
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payment requirement in any instructions of an order that it receives from the client.
(5) Where a licensee receives a request for order modification or order cancellation from the client, he shall duly bring it to their notice that if the order results in a trade in the meantime, the requests for modification or cancellation cannot be executed. (6) A licensee shall place all orders on the trading system and shall not accumulate client’s order or unexecuted balances of orders and shall act promptly in accordance with instructions provided by the client unless he has discretion as to timing, in which case he must exercise judgment as to the best moment. (7) A licensee shall provide its client with a copy of the trade confirmation slip as generated on the trading system on execution of the trade. (8) Where the licencee is required to pay margin money on transactions executed on behalf of the client, he shall collect the same from the client.
Quarterly Settlement of account of client 35.-(1) A licensee shall be required to settle accounts of their clients every quarter subject to the condition that, for the clients having open position on such quarterly settlement date, the licensee may retain the requisite funds to meet the maximum likely margin obligations for the next three trading days to ensure that the clients is not unnecessarily disadvantaged due to such quarterly settlement. (2) When settling the account, the licensee shall send to the client a ‘statement of accounts’ containing an extract from the client ledger of funds for the relevant quarter indicating the retention of funds, if any. (3) The settlement of account shall not be necessary for collateral or margin in the form of a bank guarantee or fixed deposit receipts (FDR) or other collaterals received from clients. (4) There shall be no inter-client adjustments or any inter family or group company related accounts for the purpose of settlement of the client account. (5) The time difference between two settlements of a clients account should not be more than 90 days. (6) Every case of non-settlement of a client’s account on a quarterly basisshall attract a penalty of shillings 1,000,000/-.
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Alerts to clients 36. (1) An Exchange shall, as an additional facility, communicate the details of trades executed on the Exchange platform to clients at the end of each trading day through electronic or any other forms. (2) The alert facility shall be available to those clients who have registered their preference through their respective members to receive alerts directly from the Exchange. (3) The alerts shall provide the information about all the trades executed in the client account during the day which will enable the client to verify the trade on the Exchange website under the heading market data. (4) Licensees who are members of the Exchange shall be required to verify and upload the details of mobile number and email address of the clients and any change in such details shall be updated by the members at the earliest. (5) Where an exchange is not able to deliver the message or email to any client, the respective licensee shall be informed for necessary follow-up action.
Trading obligation 37.-(1) Licensees shall ensure that the fiduciary and other obligations imposed on them and their staff by the various statutory Acts, Rules and Regulations are complied with. (2) a licensee shall ensure that - (a) any employee who commits the licensee to a transaction has the necessary authority to do so; and (b) employees are adequately trained in operating in the relevant market segment in which they deal, are aware of their own and their organization’s responsibilities as well as the relevant laws governing the commodities exchange and their members. (3) A licensee shall be responsible for all the actions, including trades originating through or with the use of the licensee’s Identity, User Identity or User password at any point of time. (4) A licensee entering into transactions on behalf of clients, the licensee shall ensure that they abide by the code of conduct and regulations as enumerated in these Regulations; (5) A licensee or person associated with a licensee shall not make improper use of client’s funds or commodities.
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G.N. No. 146 (contd.)
(6) A licensee shall not publish and circulate or cause to be published or circulated, any notice, circular, advertisement, newspaper article, investment service or communication of any kind unless- (a) the publication is approved by the Authority and the publication purports to report any transaction as a purchase or sale of any commodity; and (b) the transaction referred to in paragraph (a), is a bona fide purchase or sale of a contract or which purports to quote the purchase or sale price for any contract or that such quotation represents a bona fide order of a commodity contracts. (7) When entering into or arranging transactions, licensees shall ensure that at all times great care is taken not to misrepresent in any way the nature of transaction. (8) A licensee shall not exercise any discretionary power in a client’s account unless such client has given prior written authorization to a stated individual or individuals and the account has been accepted by the licensee and is evidenced in writing by the licensee. (9) A licensee shall not act as a principal or enter into any agreement or arrangement with a client or client’s agents, employees or any other person connected to the client, employee or agency, whereby special or unusual rates are given with intent to give special or unusual advantage to such client for the purpose of securing his business. (10) Unless a Court Order has been duly issued in that respect, a licensee shall not disclose the name of a client or beneficial owner’s identity to any person except to the Authority or Exchange, Clearing House, and concerned Clearing Member.
Unfair Trading Practices 38.-(1) A licensee shall not buy, sell or deal in contracts in a fraudulent manner, or indulge in any unfair trade practices including market manipulation.
(2) Without prejudice to the generality of the provisions of sub regulation (1) of this regulation, a licensee shall not indulge in the following market malpractices:
(a) effect, take part either directly or indirectly in transactions, which are likely to have effect of
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G.N. No. 146 (contd.)
artificially, raise or depress the prices of Contracts, (b) indulge in any act, which is calculated to create a false or misleading appearance of trading, resulting in reflection of prices, which are not genuine; (c) buy, sell commodities or contracts on his own behalf or on behalf of a person associated with him pending the execution of the order of his client or of his company or director for the same contract; (d) delay the transfer of commodities in the name of the transferee; (e) indulge in falsification of books, accounts and records for the purpose of market manipulation; (f) When acting as an agent, execute a transaction with a price other than the price at which it was executed on the exchange; (g) either takes opposite position to an order of a client or execute opposite orders which he is holding in respect of two clients other than in the manner laid down by the law or rules of the exchange.
Register of interest in titles to commodity contracts 39.-(1) This regulationapplies to a commodity dealer, commodity broker, commodity trading advisers and their representatives and a financial journalist. (2) The Provisions of Part V and sections 50, 51, 52,53,54,55 and 56 of the Capital Markets and Securities Act, regardingmaintenance of register of interest of securities shall apply mutatis mutandis to the intermediaries referred to in sub-regulation (1) and reference to the word “securities” shall be construed as “titles to commodity”. (3) The Notification on the particulars of the register and the place at which the register shall be kept pursuant to Section 52of the Capital Markets and Securities Act, shall be as set out in Form No 7 and Form No 8 set out in the First Schedule.
PART V
COMMODITY CONTRACTS APPLICATION FOR APPROVAL, REVIEW AND REGISTRATION
Form of Application for approval 40.-(1) Subject to section 36 of the Act requiring prior approval of commodity contracts prior to its listing or trading on any
Commodity Exchanges
G.N. No. 146 (contd.)
commodity exchange, an application for approval of a commodity contract shall be- (a) in the form prescribed in the Ninth Schedule; (b) accompanied by a fee in an amount to be determined annually by the Authority; (c) accompaniedby a standardized contract. (2) Every commodity contract submitted to the Authority for approval pursuant to sub regulation (1) (c) shall contain information indicated in the samples of commodity contracts set out in the Tenth Schedule.
Review, approval, registration or refusal of contracts 41.-(1) Upon receipt of an application under this regulation, the Authority may, if it is satisfied after making such inquiry as it considers necessary that the application fulfills the requirements, approve the commodity contract for trading on a commodity exchange. (2) Where the Authority is of the view that the application is- (a) deficient in any material respect; or (b) that the applicant has failed to comply with any prescribed condition or requirement; or (c) that the continued approval and registration of the contract would not be in the public interest, it may require the applicant to correct the deficiency or comply with the prescribed condition or requirement within the time specified in the order or amend the specification of any contract or direct that the applicant submit further additional information. (3) An application shall not be approved without compliance with a direction issued by the Authority under sub regulation (2) unless such direction has been withdrawn by the Authority. (4) An application submitted under this Part shall not be declined and no registration under regulation 42 shall be revoked unless the applicant has been afforded an opportunity of being heard. (5) Any amendment or change that would, materially alter a term or condition of an approved contract shall be submitted to the Authority for review and approval.
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G.N. No. 146 (contd.)
Maintenance of register of approved commodity contracts 42.-(1) The Authority shall maintain a register of all approved commodity contracts into which all contracts shall be recorded indicating the date approved, and any particulars as the Authority may deem necessary for proper description and identification of the particular contracts. (2) The register maintained by the Authority may contain information indicated in the Eleventh Schedule.
Suspension of trading of a contract 43. The Authority may, if it considers it to be in the interest of the market or in the public interest so to do, suspend for a period not exceeding sixty days, the trading of any commodity contract and may from time to time, for the said reasons and in the said manner extend the suspension for further period not exceeding sixty days at any time.
PART VI
SUPERVISION, INSPECTION AND DISCIPLINARY ACTIONS
Adhoc and routine Inspection 44.- (1) The Authority shall at least once in every year or such number of times as it deems fit, inspect books of accounts or any other document of a licensee, clearing house, or depository for the purposes of-. (a) ensuring that the books of accounts and other books are being maintained in the manner required; (b) ensuring that the provisions of the Act, these Regulations and any other matter relating to commodities trading are being complied with; (c) ensuring that various provisions of the Rules of the Exchange and any directions, notices, circulars, instructions or orders issued thereunder are being complied with; (d) investigating the complaints received on any matter having a bearing on the activities of the licensee; (e) investigating suo-moto, for any reason where circumstances warrant an inspection into the affairs of the licensee or the commodity exchange in public interest; (f) examining whether any notices, circulars, instructions or
Commodity Exchanges
G.N. No. 146 (contd.)
orders issued by the Authority from time to time relating to trading and other activities licensee are being complied with; (g) to comply with any of the directives issued by any regulating authority including the Government to comply with any of the directives issued in this behalf by any regulating authority including compliance with the norms prescribed for client accounts, Know your Client (KYC), Member Client Agreement or any other directives. (h) detection of fraudulent trading or insider trading. (2) The Authority may appoint one or more of its officers or any other person, to undertake the inspection of the licensee or its facilities, books of accounts or other records and documents the licensee or the Exchange as the case may be. (3) Where the Authority appoints inspectors, it shall notify the licensee as the case may be, the names and addresses of the appointed inspectors. (4) Where an inspector is appointed in respect of a licensee and such an inspector is related in any capacity with the licensee then the licensee shall forthwith inform the Authority of such relationship. (5) Where after appointment of any inspector the licensee or any of its associates engages the inspector for its services in any other capacity, the inspector shall not engage itself in such other professional capacity with the licensee without prior consent of the Authority. (6) The Authority officials or the inspector who is directed by the Authority to undertake the inspection and it shall be the duty of every member, director, partner, officer and employee of the licensee, who is being inspected to produce to the inspector such books, accounts and other documents in his custody or control or arrange to produce where such books, accounts and other documents are in any other person’s custody or control and furnish him such statements and information within such time as the said inspector may require. (7) The inspector shall, in the course of inspection, be allowed to have reasonable access to the premises occupied by the licensee or by any other person on his behalf and the licensee shall be required to extend reasonable facilities for examination of any
Commodity Exchanges
G.N. No. 146 (contd.)
books, records, documents and computerized data in his possession or in the possession of any other person and also provide the copies of documents or other materials which, in the opinion of the inspecting authority, are relevant. (8) The inspector shall be entitled to examine or record, statements of any member, director, partner, officer and employee of the licensee or where an associate is examined, such associate to give to the inspector all assistance in connection with the inspection which the licensee is reasonably expected to provide. (9) It shall be the duty of every member, director, partner, officer and employee of the licensee or where an associate is examined, such associate to give to the inspector all assistance in connection with the inspection which the licensee is reasonably expected to provide. (10) The inspector shall be entitled to examine the records relating to the licensee’s financial affairs held with its bankers or any other agency which the inspector may find it relevant. (11) The inspector shall have access to accounts and other records relating to the licensee or such access as authorized by the relevant authority to accounts and other records relating to any associate of the licensee as are within the power of the licensee to provide.
Submission of Report 45.-(1) The inspector shall, as soon as possible submit an inspection report to the Authority.
(2) All documents, papers, returns or their copies submitted to the inspector may be retained on behalf of the Authority.
(3) The inspector shall maintain complete confidentiality of the investigation and all the retained documents and no disclosure of any information contained therein shall be made to any person, firm, company or authority unless required by any law for the time being in force or with the approval of the Authority. (4) The Authority shall after consideration of the inspection report communicate the findings to licensee and give him an opportunity of being heard before any action is taken on the findings of the inspector. (5) On receipt of the explanation, if any, from the licensee the Authority may call upon the licensee to take such measures as the Authority may deem fit in public interest. (6) Notwithstanding anything contained in this regulation, where the Authority is of the opinion that no such hearing should be provided in certain circumstances, it may take action forthwith
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G.N. No. 146 (contd.)
without giving an opportunity of being heard.
Collection and Dissemination of Information 46.-(1) The Authority may call upon a licensee to furnish any information or provide any explanation with regard to any component or composition, dealings, settlement, account or other related matters. (2) The Authority shall maintain the details of the clients of the licensee in confidence and that it shall not disclose to any person or entity such details of the client as mentioned in the client registration form or any other information pertaining to the client except as required any law in operation for the time being. (3) Notwithstanding anything contained in any of these Regulations, the Authority may at its discretion disseminate to regulatory authorities or to the general public, any information including information relating to any trades, dealings, settlement of dealings, accounting, disciplinary action initiated or taken against a licensee or other matters relevant for enforcement or regulatory purposes.
PART VII
MISCELLANEOUS PROVISIONS
Appeals by licensees 47.-(1) Subject to section 84 of the Act, any licensee or any person aggrieved by any decision of the Authority or any commodity exchangemay appeal to the Tribunal within fourteen days from the date the decision was communicated to that person. (2) The procedure of application and determination of the appeals shall be as prescribed in accordance with provisions of sections 136 H,136 I and 136 J of the Capital Markets and Securities Act.
Cap. 79
Compounding of offences and administrative penalties 48.-(1) Subject to the provisions of section 6(d) and (e) of the Act conferring power to the Authority to take such steps as it considers appropriate for compliance with the law or maintenance of fairness, efficiency or orderliness of the commodity exchanges business, the Authority may- (a) without instituting proceedings against any person for an offence punishable only by a fine, demand the amount of such fine or such reduced amount as it deems
Commodity Exchanges
G.N. No. 146 (contd.)
fit from the person liable and-
(i) where the person pays the amount to the Authority within fourteen days of the demand, no proceedings shall be taken against him in relation to the offence; or (ii) where the person does not pay the amount, the Authority may commence proceedings in relation to the offence. (b) as part of a settlement reached between the defaulting licencee- (i) deter by way of warning or censure the defaulting licensee to future wrongdoing in the commodities markets; (ii) impose a temporary or permanent ban on the conduct of an individual, including trading bans and bans against acting as a director or officer of a licensee and acting as or becoming a licensee in the United Republic of Tanzania; (iii) impose a restraint on an individual’s future activity in the commodities markets; (iv) impose monetary penalties for breaches of the Act or Regulations which may include the following:
(aa) ordering any person found to have breached the Act or Regulations to pay up to 10 million shillings for each failure to comply; (bb) requiring the defaulting licensee to surrender the amount obtained as a result of the non-compliance with the law; (cc) order a defaulting person to pay any costs incurred by the Authority as a result of an inspection or investigation; and (dd) order freeze of assets pending investigations to prevent investors’ assets from being transferred or misappropriated. (2) The powers of compounding offences conferred to the Authority shall only be exercised where a person admits the offence and agrees in writing to the offence being dealt with under this Regulations. (3) Where the recovery of administrative penalties is
Commodity Exchanges
G.N. No. 146 (contd.)
rendered impossible because the defaulting licencee may - (a) have no assets or has limited assets, or (b) no longer reside in Tanzania, or cannot be found; (c) has hidden assets in the names of others; the Authority may resort to orders under sub regulation (1) (b) (ii) of this regulation.
Power of Authority to enquire into transactions in relation to the holder of a licence 49.-(1) In deciding whether or not a licensee shall hold a licence under the Act, the Authority may enquire into any transactions involving the purchase or sale of commodity contracts entered into by that person, whether directly or indirectly, during any period of twelve months preceding the application or renewal of a licence, in this regulation referred to as the relevant period; to satisfy itself that the person has in such transaction or series of transactions used dishonest, unfair or unethical methods or trading practices, whether such methods or trading practices, constitute an offence under the Act or not. (2) For the purpose of sub regulation (1), the Authority may, by notice in writing, require a licensee to submit detailed information of all or any transactions which were completed during the relevant period. (3) Any person who, without reasonable excuse, fails or refuses to submit information to the Authority within the time specified in the notice referred to in sub regulation (2) or who knowingly gives false or misleading information shall, in addition to any other penalty that may be imposed under the Act, be liable, in the case of an application for renewal of a licence, to have his licence revoked and in the case of first application for a licence to have his application refused.
Power of the Authority to impose conditions or restrictions 50.-(1) The Authority may grant or renew a licence subject to such conditions or restrictions as it thinks fit and the Authority may, at any time by written notice to a licence holder, vary any condition or restriction in relation to the licence. (2) Without limiting the generality of subsection (1), the Authority may in granting or renewing a commodity trading advisor’s licence impose a condition or restriction as to the class of business that the commodity trading advisor may carry on including
Commodity Exchanges
G.N. No. 146 (contd.)
condition or restriction that-
(a) he shall only carry on the class of business of advising others concerning commodities; or (b) he shall only carry on the class of business of issuing or promulgating analyses in reports concerning commodities; or (c) he shall carry on any of the classes of business in paragraphs (a), (b) in combination with each other. (3) The Authority may, by written notice to a licence holder, suspend, cancel, restrict or impose terms and conditions on the right of the licence holder to call at any residence or telephone any residence in Tanzania for the purpose of dealing in any commodity or commodity contract. (4) Any holder of a licence who contravenes or fails to comply with any condition or restriction in the licence commits an offence under the Act. (5) In this section "residence" includes any building or part of a building where the occupant resides either permanently or temporarily.
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G.N. No. 146 (contd.)
FIRST SCHEDULE
(Under regulation 5)
PART A
APPLICATION FORMS
FORM NO: 1
APPLICATION FOR APPROVAL TO ESTABLISH A COMMODITY EXCHANGE
- Name of Company .................................................................................................................... Limited.
- Address: ...........................................................................................................................................
- Date of Incorporation: .....................................................................................................................
- Number of Company: ......................................................................................................................
We hereby apply for approval to establish a commodity exchange and submit the following information for your consideration:
(a) Location of principal office ........................................................................................................
(b) Details of capital structure:
(i) Nominal capital. ....................................................................................................................
(ii) Paid up capital. .....................................................................................................................
(c) Names and addresses of Directors.
- ....................................................................................................................................................
- ....................................................................................................................................................
- ....................................................................................................................................................
- ....................................................................................................................................................
- ....................................................................................................................................................
- ....................................................................................................................................................
- ....................................................................................................................................................
(d) Name and address of the Chief Executive:
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............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
- We enclose two copies each of the following documentation required to accompany the application.
FOR OFFICIAL USE ONLY
Status:
Received/Not received:
| (a) The Memorandum and Articles of Association, and the rules and by-laws of the Stock Exchange Act................................................ | |
|---|---|
| (b) The listing requirements for the Stock Exchange ................................................. | |
| (c) The list of names and addresses of the members of the Stock Exchange | |
| (d) The list of companies listed with the Stock Exchange | |
| (e) The audited annual accounts for the last three years of operation, or the period since inception, if shorter, of the securities exchange. If the company has taken over existing operations of a securities exchange, please provide those relevant accounts |
-
We also enclose application/ renewal fee of TZS..........................................................................
-
Declaration of compliance :
I/We ....................................................................................................................................................
do hereby state that I/we have read the Commodity Exchanges Act,(No: 19 of 2015) and the Rules of the ........................................................................................................................................
(name of the Commodity exchange) designed to regulate the commodity exchanges and we declare that I/we shall abide by the said Act and the Rules of the commodity exchange.
Date: ...........................................
Signed: .....................................................................................) Director .....................................................................................) Director
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.....................................................................................) Secretary
FORM NO. 2
APPLICATION BY A COMPANY FOR A COMMODITY BROKER’S OR COMMODITY DEALER’S LICENCE
THECOMMODITY EXCHANGES ACT(ACT NO: 19 OF 2015)
| Application is hereby made for a Commodity Broker’s /Commodity Dealer’s Licence under the Act and the following statements are made in respect thereof: | |
|---|---|
| Note: | |
| 1 | If space is insufficient to provide details, please attach annexure(s). Any such annexure should be identified as such and signed by the signatory to this application. |
| 2 | This application must be accompanied by the last audited financial statement of the applicant. |
INFORMATION ON THE APPLICANT
| 1. | (a) | Name of Applicant:................................................................................................................... |
|---|---|---|
| .................................................................................................................................................... | ||
| (b) | Registered Office:...................................................................................................................... | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| (c) | Place of Incorporation:.............................................................................................................. | |
| (d) | Full address and telephone number of the principal place at which the business of the applicant is to be carried on: | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| (e) | The authorized and paid-up capital of the applicant, including the types of shares issued: | |
| (i) Authorized Share capital: ....................................................................................................... | ||
| .................................................................................................................................................... | ||
| (ii) Paid-up Capital: ..................................................................................................................... |
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| (iii) Types of Shares Issued: ....................................................................................................... | ||
|---|---|---|
| (f) | The details of Shareholders of the applicant, including the name, address, amount of shares being held and ate of acquisition: | |
| Name of Shareholder: ............................................................................................................... | ||
| Address: ................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| No of Shares ............................................................................................................................. | ||
| Date Acquired............................................................................................................................ | ||
| (g) | Address of place at which applicant’s register under Regulation 39 will be kept: | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| (h) | Set out as an annexure hereto details of each director and secretary showing full name, residential address, date of birth, office held, date of appointment and educational qualifications. | |
| 2 | Stare the nature of the principal business of the applicant: | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| 3 | (a) | State in detail the activity and the manner in which the applicant proposes to conduct the business for which the applicant requires a dealer’s licence: |
| ... |
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| ... | |||
|---|---|---|---|
| ... | |||
| (b) | The type of clients with whom the applicant proposes to do business with: | ||
| .................................................................................................................................................... | |||
| .................................................................................................................................................... | |||
| (c) | Describe in detail the organizational structure and internal control procedures which the applicant has adopted or proposes to adopt for its proposed business (Separate Annexure). | ||
| 4 | Set out name and address of each person who directly or indirectly exercises or has power to exercise a controlling influence over the management and policies of the applicant other than those shown as directors: (separate Annexure) | ||
| 5 | Is any director or secretary of the applicant a director of any other corporation? Using an annexure, answer “Yes” or “No” for each person: if “yes” give details of: | ||
| (a) | Name of corporations; | ||
| (b) | Places of incorporation; and | ||
| (c) | Dates of appointment | ||
| (for question 6 and 8 answer “Yes” or “No” in space provided . If “Yes” attach annexure giving all relevant particulars) | |||
| 6. | (a) | Been licensed or registered in any place under any law which requires licensing or registration in relation to dealing in securities? | Answer .................... |
| (b) | Ben licensed, registered or otherwise authorized by law to carry on any trade, business or profession in any place? | .................... | |
| Been licensed, registered or is restricted in its or his right to carry on any trade, business or profession for which a specific licence,. registration or other authority is required by law in any place? | .................... | ||
| 7. | Has any director or secretary of the applicant within the past ten years | ||
| (a) | Been a member or partner in a member of the applicant within the past ten years? | .................... |
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| (b) | Been suspended from membership of any securities exchange or otherwise disciplined by a securities exchange? | .................... | |||
|---|---|---|---|---|---|
| (c) | Been refused membership of any securities exchange? | .................... | |||
| (d) | Been known by any name other than the names shown in this application? | .................... | |||
| (e) | Been convicted of any offence other than a traffic offence in Tanzania or elsewhere or ae there any proceedings now pending which may lead to such a conviction? | .................... | |||
| (f) | Has judgement including findings in relation to fraud, misrepresentation or dishonesty been given against him in any civil proceedings, in Tanzania or elsewhere? (if “yes” using an annexure give full details, including whether judgement is unsatisfied) | .................... | |||
| (g) | Been declared bankrupt or compounded with or made an arrangement for the benefit of his creditors, in Tanzania or elsewhere? | .................... | |||
| (h) | Been engaged in the management of any corporation other than those referred to in answer to question 5? | .................... | |||
| (i) | Been refused a fidelity or surety bond in Tanzania or elsewhere? | .................... | |||
| (j) | Been disqualified as a director, or been director of a company that has gone into receivership or liquidation, in Tanzania or elsewhere? | .................... | |||
| 8 | Has any director or management staff of the applicant any experience in performing the functions in relation to the proposed activity of the applicant referred to in question 3? | ||||
| (separate Annexure) | |||||
| 9. | In relation to each director and secretary of the applicant set out below details of the officer’s employment and business activities, during the previous ten years: | ||||
| Name of director or secretary | Name and address of employer (if self-employed so state | Nature of business | Description of duties or relation to the employment or activity | Period of employment of activity (give exact dates) | |
| (separate Annexure) | |||||
| 10 | Set out any additional information (including any formal qualifications or training of the directors or secretary of the applicant and the name of the institution that conducted the |
Commodity Exchanges
G.N. No. 146 (contd.)
| course) considered relevant to this application. | ||||
|---|---|---|---|---|
| (separate annexure) | ||||
| 11 | Set out below details of two persons with whom each director and the secretary of the applicant has had regular contact over the past five years and whom the Authority may enquire regarding the character and reputation of the respective director or secretary | |||
| Name of character referee | Address of character referee | Occupation of character referee (separate annexure) | Secretary in respect of whom enquiries may be made | |
| 12 | I declare that all information given in this application and in the attached annexures is true and correct | |||
| Dated this ...............day of .............................20........... | Signature.......................................... | |||
| Name.................................................. | ||||
| Capacity.............................................. |
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FORM NO.3
APPLICATION FOR A COMMODITY TRADING ADVISOR’S LICENSE THE COMMODITY EXCHANGES ACT (ACT NO: 19 OF 2015) (SECTION 41)
| Application is hereby made for a Commodity Trading Adviser’s license under the Act and the following statements are made in respect thereof: | |
|---|---|
| 1. | If space is insufficient to provide details where necessary please attach annexure(s) any such annexure should be identified as such and signed by the signatory to this application. |
| 2. | This application shall be accompanied by the last audited financial statements of the applicant |
PART 1
INFORMATION ON THE APPLICANT
| 1 | (a) | Name of Applicant:................................................................................................................... |
|---|---|---|
| .................................................................................................................................................... | ||
| (b) | Registered Office:...................................................................................................................... | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| (c) | Place of incorporation:.............................................................................................................. | |
| (d) | Full address and telephone number of the principal place at which the business of the applicant is or is to be carried on: | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| (e) | Authorized and paid-up capital of the applicant including the types of shares issued or to be issued: | |
| (i) Authorized Share Capital: | ||
| .................................................................................................................................................... | ||
| .................................................................................................................................................... |
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| (ii) Paid up Share Capital | ||
|---|---|---|
| .................................................................................................................................................... | ||
| (iii) Type of Shares: | ||
| .................................................................................................................................................... | ||
| (f) | The details of shareholders of the applicant, including the name, address, amount of shares being held and date of acquisition: | |
| (Separate Annexure) | ||
| (g) | Address of place at which applicant’s register under section 52 of the Act will be kept: | |
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| .................................................................................................................................................... | ||
| (h) | Set out as an annexure hereto details of each director and secretary showing full name, residential address, date of birth, office held, date of appointment and academic as well as professional qualifications. | |
| 2. | State the nature of the principal business for which the applicant requires an a Commodity Trading Adviser’s licence: | |
| (Separate Annexure) | ||
| 3. | (a) | Indicate areas of proposed business for which the applicant requires an a Commodity Trading Adviser’s licence: |
| Either: advises others concerning commodity contracts trading ; | ||
| Or: issues or promulgates analyses or reports concerning commodity contracts; | ||
| Or; pursuant to a contract or arrangement with a customer, undertakes on behalf of the customer (whether on a discretionary authority granted by the customer or otherwise) the management on behalf of customers of a portfolio for the purpose of investment in commodity contracts. | ||
| (b) | For each indicated area of proposed business, state in detail the manner in which business will be conducted and the experience of the application and its management. | |
| (Separate Annexure) | ||
| (c) | The type of customers with whom the applicant proposes to do business. | |
| (Separate Annexure) | ||
| (d) | Describe in detail the organizational structure and internal control procedures which the |
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G.N. No. 146 (contd.)
| applicant has adopted or proposes to adopt in the conduct of its business | |
|---|---|
| (Separate Annexure) | |
| 4. | Set out name and address of each person who directly or indirectly exercises or has power to exercise a controlling influence over the management and policies of the applicant other than those shown as directors. |
| (Separate Annexure) | |
| 5. | Is any director or secretary of the applicant a director of any other corporation? Using an annexure |
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Source: Capital Markets and Securities Authority — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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