Circular No. 1 of 2024 on Continuous Professional Development Program

CAPITAL MARKETS AND SECURITIES AUTHORITY CIRCULAR NO. 1 OF 2024 12 February 2024 TO: LICENSED INTERMEDIARIES AND CERTIFIED PROFESSIONALS IN THE CAPITAL MARKETS REF: IMPLEMENTATION OF CONTINUOUS PROFESSIONAL DEVELOPMENT PROGRAM

1. BACKGROUND Pursuant to Section 32 of the Capital Markets and Securities Act, Chapter 79 R.E 2002 (CMS Act), a person providing services in the capital markets as a dealer; dealer representative; investment advisor; investment advisor representative; nominated advisor representative; or any other market intermediary licensed by CMSA, must attend and pass Securities Industry Certification Course (SICC) conducted by CMSA in collaboration with the Chartered Institute for Securities and Investment (CISI), UK. In its endevour to develop and strengthen capital markets in Tanzania, the CMSA in collaboration with the CISI is implementing a Continuous Professional Development (CPD) Program.

2. OBJECTIVES OF THE CPD PROGRAM The objective of the Program is to keep market players and professionals with the pace of global market demands in delivery of services and promoting professionalism and expertise in the capital market business. Specifically, the objectives of the CPD are to: i) Provide a platform for brokers, dealer representatives, nominated advisors, nominated advisor representatives, investment advisors, regulators, stock exchange officials and other market players to update their knowledge; ii) Ensure that market professionals have sufficient understanding of capital markets in order to perform their roles in a way that contributes to making an orderly market that is fair and efficient; iii) Convey an understanding of the practical skills for managing companies in the securities business in general; iv) Facilitate market professionals to appreciate that securities business is the most likely to flourish in a market that enjoys the trust of both investors and issuers; and v) Bridge the gap of the increasing need for competent market professionals given the current and anticipated growth of capital market industry in the Country. 6th Floor, Garden Avenue Tower, Ohio Street/Garden Avenue Street

3. CPD REQUIREMENTS Licensed intermediaries and certified professionals in the capital markets are required to attain a minimum of 35 CPD hours in each financial year. Out of the 35 CPD hours, at least 21 hours must be attained from structured program while the 14 hours may be attained from unstructured program. The above notwithstanding, 3.5 hours of the CPD should be attained from program related to ethics in the capital markets. The annual CPD cycle will be 1st July to 30th June each year. Details on how licensed intermediaries and certified professionals will be able to log on and undertake the CPD, including definitions of structured and unstructured CPD programs are available in the CPD Policy Guidelines which are attached hereto as Appendix I and also published on the CMSA website.

4. EFFECTIVE DATE The CPD program will come into effect from 1st July 2024 and will be used as part of the licensing requirements from 1st July 2025. This provides market professionals with 17 months from the date of this Circular to be able to clock the CPD hours for licensing requirements. Yours Sincerely, CAPITAL MARKETS AND SECURITIES AUTHORITY CPA Nicodemus D. Mkama CHIEF EXECUTIVE OFFICER 6th Floor, Garden Avenue Tower, Ohio Street/Garden Avenue Street