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More asset firms registered

Eric Chiriga

MORE than five asset management firms have now been registered in accordance with the Presidential Powers (Temporary Measures)(Asset Management) Regulations.

“Verdana, Arial, Helvetica, sans-serif”>Fidelity Life Asset Management (FLAM), National Discount House (NDH) Asset Managers, Imara, Kingdom and Legend among the few have announced their registration with the presidential powers regulations.

“Imara Asset Management Zimbabwe (Pvt) Ltd (IAMZ) is now a registered asset manager in terms of the Presidential Powers (Temporary Measures) (Asset Management) Regulations 2004 (SI 16 of 2004),” an official from IAMZ said.

The official said IAMZ has the approval of the Reserve Bank of Zimbabwe (RBZ) to conduct the business of portfolio management.

All asset management firms are required to register with the RBZ in line with the measures announced by the central bank in its monetary policy statement.

The central bank outlined the requirements for registration which included a minimum paid-up equity capital of $500 million.

Among the requirements RBZ also said management of the firm should be fit and proper and must have sufficient qualifications and experience for the management of a company carrying out the business of an asset manager.

The companies are also required to present the certificate of incorporation, memorandum and articles of association and furnish the central bank with past financial performance statements, proof of capital and tax clearance certificates.

However, most firms that applied for registration did not meet the requirements.

“For the majority of the applicants, it has been noted that the information submitted fell far short of what is required in terms of the minimum guidelines sent out to the market by the central bank,” governor Gideon Gono said in his monetary policy statement review of the first quarter to March 31.

He said it was important that applicants fully comply with the minimum requirements so as to expedite the appraisal process.

The majority of firms which applied for registration were those already operating as asset management firms.

Gono said the RBZ had received 57 applications for registration as asset management companies by March 31.

Asset management companies have of late received widespread criticism over the manner in which they were conducting their business.

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