RBZ to regulate unit trust schemes, POSB

Godfrey Marawanyika

THE Reserve Bank of Zimbabwe (RBZ) is now empowered to supervise and regulate the operations of the unit trusts schemes and the People’s Own Savings Bank (POSB).


>

In the past unit trust schemes were managed by the Registrar of Banks, under the Ministry of Finance, while POSB had its own separate legislation.

The powers to regulate the unit trusts and moneylenders have been necessitated by the amendment of the Banking Act.


According to general notice 101 of 2005 sent to financial institutions by the RBZ on March 14, the changes are with immediate effect.


“In terms of Section 3 (3) of the Banking Act (Chapter 24:20), (the changes) shall apply to building societies, POSB, asset managers, unit trust schemes and moneylenders as the case maybe, with effect from 11 March 2005,” Norman Mataruka, division chief for bank licensing, supervision and surveillance, said in the notice.


“In essence, with effect from 11 March 2005, the various institutions mentioned in the notice will be registered, supervised and regulated in terms of the specified provisions of the Banking Act.”


Mataruka said that in the circumstances, “you (POSB and asset management companies) are advised to acquaint yourselves with and abide by the various provisions of the Banking Act applicable to your particular institutions.”


Meanwhile, the central bank this week raised concern over the diversion of foreign currency that comes via the diaspora funds.


RBZ governor Gideon Gono said there were unrepentant players including retailers who were using their businesses as fronts to deal in foreign currency on the parallel market.


“Others have suddenly assumed that they can get away with diverting diaspora funds through tactics that blatantly flout Exchange Control and Anti-Laundering Statutes,” he said.


Gono also said that the central bank will not stagger nor go back on its declared mandate to weed out from the banking sector management and boards that are not fit to be entrusted with public funds.