Section 7: Functions of Authority

(1) The functions of the Authority are- (a) to approve prospectuses and other offering documents under which securities are offered to the public and to approve information memorandum; (b) to develop all aspects of the capital markets with particular emphasis on the removal of impediments to, and the creation of incentives for, long term investments in productive enterprise; (c) to create, maintain and regulate, through implementation of a system in which the market participants are self-regulatory to the maximum practicable extent, of a market in which securities can be issued and traded in an orderly, fair and efficient manner; (d) to cooperate with, provide information to conduct any investigation or inquiry for, or otherwise assist any foreign regulatory authority in the performance of its duties; (e) to implement regional and international standards and best practice in securities markets, securities regulation and supervision; (f) to protect investor interests; and (g) to operate the Investor Compensation Fund established by section 90. (2) For the purpose of carrying out its objects, the Authority may exercise, perform and discharge all or any of the following powers, duties and functions- (a) advise the Minister on all matters relating to the development and operation of capital markets; (b) maintain surveillance over securities to ensure orderly, fair and equitable dealings in securities; (c) grant a licence to any person to operate as a stockbroker, dealer or investment adviser, fund manager, investment house, collective investment scheme, market adviser, representative, trustee, custodian or depository; and ensure the proper conduct of that business; (d) grant approval to any person to operate as a commodities exchange, securities exchange, securities central depository, credit rating agency, registrar, underwriter, clearing house, clearance and settlement facility or to operate in any other capacity which directly contributes to the attainment of the objectives of this Act; and to ensure the proper conduct of that business; (e) approve venture capital funds; (f) approve any other persons dealing in securities or exercising any functions related to securities, and their agents and to control and supervise their activities with a view to maintaining proper standards of conduct and professionalism in the securities business; (g) inquire into the affairs or conduct of any approved person and to hear and determine any complaints concerning any act or omission, which, if proven, would be a breach of this Act and to refer, in its discretion, that inquiry or complaint to the Tribunal; (h) publish, when the Authority considers it appropriate, any report or comment made by the Authority in the course of the exercise of its functions; (i) conduct any investigation or inquiry relevant to the securities markets in Uganda or elsewhere and publish any report arising from that investigation or inquiry; (j) make and maintain effective arrangements for consulting practitioners and consumers on its general policies and proposed legislative measures for the capital markets industry; (k) formulate principles for the guidance of the securities industry; (l) monitor the solvency of licence holders and take measures to protect the interests of customers where the solvency of any licence holder is in doubt; (m) protect the integrity of the securities market against any abuses; (n) monitor takeovers and mergers in respect of listed companies in Uganda and adopt measures for the supervision and regulation of takeovers and mergers in order to protect the interests of investors and to provide for an orderly and well-informed capital markets; (o) formulate measures to minimise and supervise any conflict of interest that may arise for licensed persons and the Authority; (p) create the necessary environment for the orderly growth and development of the capital markets; (q) cooperate with and enter into agreements for mutual cooperation and assistance with other regulatory authorities, whether within or outside Uganda, for the development and regulation of cross border activities in capital markets and provide assistance and information to those authorities; (r) perform the functions conferred on the Authority by the Companies Act; (s) implement East African Community Council regulations, directives, decisions or recommendations relating to the securities markets in the East African region; (t) trace and freeze any assets, including the bank accounts of any person who, upon investigation by the Authority, is found to have engaged in any fraudulent dealings in securities or insider trading; (u) act as the supervisory authority for anti-money laundering and combating of financing of terrorism in the capital markets and perform the functions conferred on the Authority, as an accountable person, under the Anti-Money Laundering Act; and (v) undertake such other activities as are necessary or expedient for giving full effect to the provisions of this Act.