The new rules by the regional stock exchange regulators requiring stock brokers and other practitioners in the capital markets to be certified before joining the industry will help develop the sector, according to the Capital Market Advisory Council (CMAC).
Last week in Kampala during the opening of Securities Industry Training Institute (SITI) , board members, including all security exchanges chief executive officers in East Africa and Central Depositary and Settlement Corporation Limited (Kenya) agreed that all brokers, fund managers and investment advisors must have SITI certificate to trade.
Celeste Rwabukumba, the Operation Manager at CMAC said that all practitioners will be required to under go training conducted by SITI which will provide them with the rules and regulations of the industry.
“This is a good development which will give market actors the understanding of the regional market, experience, how the business operates as well as the harmonization of the regional stock markets,” Rwabukumba
This is a new development in Rwanda since stock brokers and other practitioners joined the business with out necessarily being certified.
In the region, it is only Tanzania that had the certification program and with the harmonization plans, it is imperative that other members do the same.
Rwanda has seven registered stock brokers companies which focus mainly on corporate finance, stock brokerage and advisory services among others.
Uganda’s security exchange chief executive officer and SITI chairman Simon Rutega said the development aims at ensuring adherence to ethics and integrity in the East African stock markets.
Starting 2007 to 2009 there have been cases of trading malpractices particularly by brokers in the Nairobi Stock Exchange.
It was established to manage and deliver a range of training program on capital markets and investments, corporate finance, asset management, entrepreneurship and corporate governance.
SITI board says the establishment of SITI East Africa emanated from the need to have players in the East African region benefit from a systematic and well managed training and capacity building initiative.
During the launch of the SITI curriculum, board executives announced that the five institutions which are on board would each contributed $15,000 ($75,000 in total) (about Shs141 million) to sustain the operations of the institute.