Capital Markets (Licensing) Regulations

Part HI-Application Fee.

Regulations may be cited as the Capital Markets Tide (Licensing) Regulations, 1996.

these Regulations, unless the context otherwise interrequires, any term defined in the Capital Markets Authority pretall0n' Statute, 1996, shall have the meaning assigned to it in that s^6No'' Statute, and that Statute is, in these Regulations referred to as the Statute.

rr •£- j • i tions. column of the First Schedule shall be in the form specified in the third column of that Schedule and set out in the Second Schedule.

Regulations shall be Directions completed in accordance with the directions specified in the ,n form.

An application for a licence or renewal of a licence Manner of • . z. •< i « . . . application. in the form presenbed, together with any relevant annexures, shall be enclosed in a sealed envelope and lodged with the Authority.

Alteration 6. An applicant for a licence shall, immediately upon the of facts decision to make the alteration, or as the case may be, disclosed in application. immediately upon the occurrence of the relevant event, give written notice to the Authority of-

with requirements as may be determined by the Authority. require ments.

renewal of a licence shall be Fees accompanied by the appropriate fee prescribed in the Third Schedule.

application made Refusal of application. under these Regulations if it is not accompanied by the licence fees prescribed.

dealer's licence shall be Broker or dealer's accompanied by the deposit prescribed in the Third Schedule. deposit.

shall be refunded to Refund of deposit. an applicant immediately his or her application for a broker or dealer's licence is refused or, following the grant of the licence, when it is surrendered or otherwise ceases to have effect. Application

may be invested by of deposit the Authority in a manner the Authority considers appropriate and the income earned by that investment shall be retained by the Authority.

The Authority shall consider an application and Period of application inform the applicant of its decision within forty five days after the application has been lodged with it; except that where further information has been required in accordance with subsection (1) of section 35 of the Statute, the period of forty five days shall be calculated from the time that the required information is submitted to the Authority. (2) If no decision is made by the Authority within the period stated in subregulation (1), the Authority shall immediately notify the Minister and the applicant of the reasons for the delay.

Form of 14. A licence granted by the Authority shall be in the form licence. set out in the Second Schedule.

General 15. It shall be a condition of every licence thatconditions.

A broker or dealer shall have and shall at all times Financial limits for provide and maintain in his or her business as a broker or dealer, brokers and a net capital of not less than fifteen million shillings. dealers.

Margin 17. (1) In relation to margin accounts, a broker or dealer or trading. representative of either, shall not-

"debit balance" means the cash amount owed by a client in the client's margin account without deducting any cash deposited by the client as margin; and

"margin" means the aggregate amount of cash and market value of securities deposited by a client into the client's margin account but does not include securities which are bought or carried in the margin account;

"net capital", shall be calculated monthly and means the shareholders' funds or the proprietors' capital investment for carrying out the business of a broker or dealer, and subordinated loans accepted for the purpose by the Authority less-

the Authority is satisfied that a licence has been inadvertently lost, destroyed or defaced, the Authority shall replace the licence on payment by the licensee of the fee prescribed in the Third Schedule Display of 19. (1) Every holder of a licence granted under Part IV of licence. the Statute shall display his or her licence at all premises in which he or she transacts with the public the securities business authorised by the licence.

SCHEDULES.

FIRST SCHEDULE Regulation 3 LIST OF FORMS

Provision of Statute Description of Form Number of Form in or Regulations Second Schedule. Section 35 (1) Application for a licence 1 Regulation 3 to conduct the business of a broker or dealer or investment adviser Section 35 (1) Application for 2 Regulation 3 renewal of broker or dealer or investment adviser's licence Section 35 (1) Application for 3 Regulation 3 representative's licence Section 35 (1) Application for 4 Regulation 3 renewal of representative's licence Section 35 (1) Licence 5 Regulations 3 and 14 Section 51 Notice of place at which 6 Regulation 3 register is to be kept and notice of change of place at which the register is kept

Section 43 (c) Notice of change of 7 Regulation 3 principal place of business

Section 43 (a) Notification of 8 Regulation 3 cessation of business

Section 43 (b) Notice of change of 9 Regulation 3 representative's principal

SECOND SCHEDULE

Regulation 3 Section 35 (1) FORM 1

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996 (Statute No. 1 of 1996).

THE CAPITAL MARKETS (LICENSING) REGULATIONS, 1996.

APPLICATION FOR A LICENCE TO CONDUCT THE BUSINESS OF A BROKER OR DEALER OR INVESTMENT ADVISER

Notes: If space is insufficient to provide details, please attach annexure(s). Any annexure should be identified as such and signed by the signatory to this application.

This application must be accompanied by-

(To be completed only by applicant for investment adviser's licence)

the applicant?

the applicant requires an investment adviser's licence (a) Advising others concerning securities;

Name Address Amount of Date of Shares Held Acquisition

Name and Date of Educational Office Date of Residential Birth Qualifi Held Appoint Address cations ment

the applicant other than those shown as Directors

the applicant have an interest in one or more shares in any company the shares of which are quoted on a securities exchange, the aggregate of the nominal amount of which constitutes not less than 5% of all the issued shares of the company?

the applicant proposes to do business; (b) Describe in detail the organisational structure and internal control procedures which the applicant has adopted or proposes to adopt for the proposed business; (c) State in detail the experience of the applicant and his management staff in the proposed business.

the applicant proposes to conduct the business for which the applicant requires a broker or dealer's licence

the applicant or any Director or Secretary of the applicant company, a Director of any company in Uganda or elsewhere? Answer "Yes" or "No" if "Yes",'give details of-

For question 12, answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.

the applicant or any Director or Secretary of the applicant company within the past 10 years (a) been licensed or registered in any place under any law which requires licensing or registration in relation to dealing in securities?

the applicant's or of each Director and Secretary of the applicant company employment and business activities, during the previous 10 years Name of Name and Nature of Description Period of individual address of business or of duties in employment applicant employer activity relation to or activity or Director (if self- the (give exact or Secretary employed, employment dates) of applicant so state) company

formal qualifications or training and the name of the institution that conducted the course) considered relevant to this application

the applicant, and neither of whom shall have any interest in the success or otherwise of this application) with whom the applicant or each Director or Secretary of the applicant company has had regular contact over the past five years and of whom the Authority may inquire regarding the applicant's character and reputation Name Address Occupation

the provisions of section 38 of the Statute relating to false statements made in applications

in this application and in the attached annexures (if any) is true and correct Date

/Signa lure (Name of )* Applicant/Director/Sccrctary

*Dcletc whichever is inapplicable. fWhcrc the applicant is a company, this application is to be signed by a Director or Secretary of (he company.

FORM 2 Regulation 3 Section 35 .

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

APPLICATION FOR RENEWAL OF BROKER OR DEALER'S OR INVESTMENT ADVISER'S LICENCE.

Application is made for the renewal of-

A Broker or Dealer's Licence/An Investment * Adviser's Licence and the following statements are made in respect of the applicant-

the applicant is a company, please complete the following- (Answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) (a) Since the last application-

♦Delete whichever is inapplicable.

the applicant is an individual, please complete the following- (Answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) Since the last application, has the applicant-

4.1 am/We * are aware of the provisions of section 38 of the Statute relating to false statements in applications.

I/We declare that all information given in this application and

Date: ................................................................................

tSignature Applicant/Director/Secretary (Name of )*

*Delcte whichever is inapplicable. fWhere the applicant is a company, this application is to be signed by a Director or Secretary of the company.

FORM 3 Regulation 3 Section 35 .

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

APPLICATION FOR REPRESENTATIVE'S LICENCE.

Application is made for:

A Broker or Dealer's Representative's/an Investment *Representative's Licence and the following statements are made in respect of the application.

Delete whichever is inapplicable.

provided. If "Yes" attach annexures giving all relevant particulars) Has the applicant within the past 10 years-

the applicant had any experience in performing the functions of a dealer's representative or an investment representative? (Answer "Yes" or "No") If "Yes" attach annexures giving all relevant particulars

the applicant's employment and business activities during the previous 10 years Name and Nature of Description of Employment address of business or duties in or activity employer (if activity relation to (give exact self employment dates) employed so state)

the applicant, and neither of whom has any interest in the success or otherwise of this application) with whom the applicant has had regular contact over the past five years and of whom the Authority may enquire regarding the applicant's character and reputation Name Address Occupation

the applicant have an interest in one or more shares in any company, the shares of which are quoted on a securities exchange, the aggregate of the nominal amount of which constitutes not less than 5% of the aggregate of the nominal amount of all issued shares of the company (Answer "Yes" or "No".lf "Yes", give full details of such interest including names of companies and percentage of interest)

the applicant and the name of the institution that conducted the course) considered relevant to this application 8.1 am aware of the provisions of section 38 of the Statute relating to false statements made in applications.

9.1 declare that all information given in this application and in the attached annexure (if any) is true and correct.

Date:

Signature (Applicant)

Note: (a) This application should be accompanied by a certificate in or to the effect of the following form-

TO THE CAPITAL MARKETS AUTHORITY On the basis of due and diligent enquiry of the background of the applicant named in this form who is in my direct employment or acting for or on behalf of me, and other information available, I believe him or her to be of good character and reputation and to have the competence and experience to perform the function of a representative. Date: ......

Signature

Name

Capacity

FORM 4 Regulations 3 and 14 Section 35

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

APPLICATION FOR RENEWAL OF REPRESENTATIVE'S LICENCE.

Application is hereby made for the renewal of- Representative's A Broker or Dealer's Representative's/an Investment * Licence and the following statements are made in respect of the application.

Delete whichever is inapplicable.

provided. If "Yes" attach annexures giving all relevant particulars.) Since the last application has the applicant-

the provisions of section 38 of the Statute relating to false statements in applications

in this application and in the attached annexure (if any) is true and correct Date ............................................ Signature Name of Applicant Note: (a) This application should be accompanied by a certificate in or to the effect of the following form: TO THE CAPITAL MARKETS AUTHORITY On the basis of due and diligent enquiry made of the background of the applicant named in this form who is in my direct employment or acting for or on behalf of me, and other information available, I believe him/her to be of good character and reputation and to have the competence and experience to perform the functions of a representative. Date: Signature: Name: Capacity:

FORM 5 Regulations 3 and 14 Section 35 (1)

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

LICENCE.

THIS LICENCE is granted • to

of (address)

and authorises the said person to conduct or carry on the business of (type of business) in Uganda for a period of one year beginning and ending (both dates inclusive).

THIS LICENCE is issued subject to observance of the requirements of the Capital Markets Authority Statute, 1996, Regulations and Rules made under the Statute and such conditions as may be stipulated by the Authority and by the stock exchange of which the applicant is, or proposes to be a member.

Date

Licence No

Chairman Chief Executive Capital Markets Authority Capital Markets Authority

FORM 6 Regulation 3 Section 51

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

NOTICE OF PLACE AT WHICH REGISTER IS TO BE KEPT AND NOTICE OF CHANGE OF PLACE AT WHICH REGISTER IS KEPT.

PART I* -PLACE AT WHICH REGISTER IS TO BE KEPT

II -CHANGE OF PLACE AT WHICH REGISTER IS KEPT PART *

Date: Signature: Name: Capacity: * Complete both Parts I and II only if place at which register is kept has changed.

FORM 7 Regulation 3 Section 43 (c).

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

NOTICE OF CHANGE OF PRINCIPAL PLACE OF BUSINESS.

Date: :............................................................................................

Signature:

Name-

FORM 8

Regulation 3 Section 43 (a)

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

NOTIFICATION OF CESSATION OF BUSINESS.

of 19 business ceased to be carried on in Uganda by the above licensee in respect of which he was licensed to carry on business.

Date:

Signature:

Name:

FORM 9 Regulation 3 Section 43 (b).

THE CAPITAL MARKETS AUTHORITY STATUTE, 1996.

NOTICE OF CHANGE OF REPRESENTATIVE'S PRINCIPAL.

Tel No Fax No

the licensee will cease to be a representative of and that from the day of 19 the licensee will be a representative of whose principal place of business is at

Date:

Signature:

Name:

THIRD SCHEDULE Regulation 8 Section 35 (1).

FEES Ug. Shs.

whether for a new licence or for renewal 500,000

adviser,whether for a new licence or for renewal 250,000

every application for a broker or dealer's representative's licence, whether for a new licence or for renewal 50,000

licence, whether for a new licence or renewal 50,000

Regulation 10. DEPOSIT

On every application for a broker or dealer's licence, whether for a new licence or for renewal 5,000,000

LEO KIBIRANGO, Chairman, Capital Markets Authority.