2019 ANNUAL REPORT - Sec

2019

Annual Report

2019 ANNUAL REPORT

SECURITIES & EXCHANGE COMMISSION

ABOUT THE COMMISSION

The Securities and Exchange Commission (¡®the Commission¡¯) is established by the Securities

Industry Act, 2016 (Act 929) (¡®the Act¡¯) with the objective to regulate and promote the growth and

development of an efficient, fair and transparent securities market in which investors and the

integrity of the market are protected.

VISION

To be a top-tier securities market regulator in Africa.

MISSION

To regulate, innovate and promote the growth and development of an efficient, fair and transparent

securities market in which investors and the integrity of the market are protected.

OBJECTIVES

1. Enhancement of capital market infrastructure and strengthening the capacity of market

institutions and intermediaries.

2. Providing the legal and regulatory framework for market and product innovation.

3. Promotion of public awareness, investor rights and corporate education.

4. Establishment of an overall robust, supportive, legal and regulatory framework that

conforms to international best practices.

SEC | ANNUAL REPORT 2019

1

CONTENTS

SECURITIES & EXCHANGE COMMISSION

Chairman¡¯s Statement

6

Report of the Director-General

11

Corporate Governance Report

20

Profile Of Commissioners

27

Corporate Governance Structure

33

Management Team

34

Operational Review

39

Issuers Department

39

Broker-Dealers and Advisers Department

45

Policy Research

50

Exchanges and Markets Department

54

Funds Management Department

56

Report of Information Technology Function

60

Human Resource Management & Administration Department

62

Audit and Risk Management Department

64

Legal and Enforcement Department

69

Economic Review

79

Capital Market Review

87

Industry Analysis

109

Financial Statements

119

Report of the Management Board

120

Independent Auditor¡¯s Report

122

Statement of Operations

125

Accumulated Fund

125

Statement of Financial Position

126

Statement of Cashflows

127

Register of Licensees 2017/2018

142

Industry Tables

152

Useful Contacts

164

ANNUAL REPORT 2019 | SEC

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SECURITIES & EXCHANGE COMMISSION

TABLES

Table 1: Members of the Board or Commissioners of SEC:

Table 2: Members of Administrative Hearings Committee:

Table 3: Members of Approvals & Licensing Committee:

Table 4: Members of Audit Committee:

Table 5: Finance and Administrative Committee

21

22

22

22

Table 7: Number of Board and Committee meetings held in 2019

23

23

23

Table 8: List of License Approval by the Board in 2019

24

Table 9: Offer Document Approvals:

24

Table 10: Companies whose licences were revoked

25

Table 11a: A tabular presentation of Bond Issuances in 2019

Table 11b: A tabular presentation of Bond Issuances during the 2019 in USD

41

41

Table 12: A tabular presentation of equity offerings and other applications in 2019

42

Table 13: Annual Reports and Quarterly Financial Statements

42

Table 14: Licensed Market Operators

45

Table 15: Renewal of License

45

Table 16: Off-site Inspection

46

Table 17: Broker-Dealers Industry

46

Table 18: Investment Adviser¡¯s Industry

47

Table 19: Processing of Applications

57

Table 20: Fund Managers not operating as at the time of Revocation of License

58

Table 21: Fund Managers still in operation as at the time of Revocation of Licence

59

Table 22: Annual Real GDP Growth, 2009-2019

Table 23: Movement in In ation and Bench-Marked 91 and 182-Day Treasury- Bill Rates

80

81

Table 24: Year-on-year in ation for 2019

82

Table 25: Comparative Inter-Bank Exchange Rate & the Forex Bureau Exchange Rates (Closing Values)

84

Table 26: Sector Contribution to GDP

85

87

89

91

Table 6: Members of Property Committee:

Table 27: Stock Markets Returns in Africa in 2019

Table 28: Performance of listed stocks on the GSE & GAX for the year 2019

Table 29: GSE Composite Index 2019:2018

SEC | ANNUAL REPORT 2019

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