PARLIAMENT - The government, through the Ministry of Trade and Commerce, has tabled a bill in Parliament that seeks to regulate collective investment schemes.
Collective investment schemes involve a group of investors pooling resources together to collectively invest their money in stocks, bonds, treasury bills, and other securities under expert guidance.
According to the bill, the schemes will be regulated by the Capital Markets Authority.
The draft law recognizes three forms of schemes; Mutual Fund Company, Contractual Schemes and Unit Trusts.
According to the Minister of Trade and Commerce, Monique Nsanzabaganwa, the bill is intended to establish well-regulated schemes through which Rwandans and residents may invest and participate in national development.
The bill creates the position of investment managers, a person responsible for, and who manages the investment of the assets of a scheme and who is qualified to act and licensed by the authority.
Article 14 of the bill prohibits any person from promoting, establishing or operating a scheme, unless it is registered.
Under the new law, Capital Markets Authority shall issue a certificate of registration for a scheme only after it determines that the Scheme satisfies the requirements of this law and only a promoter licensed under the law may apply for the registration of a scheme or schemes.
“If the authority approves the application, it shall issue a certificate of registration to the promoter authorizing it to establish the scheme, which shall be valid from the date of issue up to a period that shall be determined by the authority in regulations it shall issue,” the draft law reads in part.
Nsanzabaganwa told parliament that collective investment schemes are becoming popular in the country and a law regulating them is needed.