How to Obtain Authorized Security Dealers License In Uganda

Obtain Authorized Security Dealers License In Uganda By Yourself

  1. In order to obtain an authorized license for a securities dealer The applicant must make contact with for the Capital Markets Authority offices.You can visit their website by clicking this link Uganda Capital Market Authority
  2. The application for a security dealer license must be accompanied by an application form that is duly completed and the following Rules as well as certified copies of the following documents
    • Broker’s license granted by Authority
    • Certificate of incorporation
    • Memorandum and Articles of Agreement.
    • A legal declaration signed by the chief officer of the Applicant , to confirm that the company is not declared insolvent and has a sufficient financial standing.
    • A commitment that the applicant will abide by these Rules as well as all rules of the security dealer License.
  3. The applicant must ensure that he/she is armed with all the documents required in order for the process to be successful . These documents can be found in the “Required Documents” section on this page. You can also find them in the Application form and Authorized Securities Dealer License Checklist.
  4. A payment of fees that are appropriate should be made. This information is available on the “Fees” section on this page, or on the CMA’s CMA Service Delivery Charter.
  5. After the process is completed, Capital Markets Authority will inform the applicant of any unresolved issues 14 days following the submission of an application. If there are no problems they will issue a license within 30 days. Authority will issue the applicant a license within 30 days.

Required Documents For Obtain Authorized Security Dealers License

  1. Application form
  2. Memorandums and Articles of Association
  3. Certificate of incorporation
  4. Plan of business complying with the requirements of the regulation 46(d)(authorized security dealers) of the Capital Markets Authority (Licensing Requirements) (General) Regulations.
  5. An unaudited statement of accounts for the accounting year that ended not earlier by six months from the time of the application, and annually audited accounts covering the previous 2 years (in the case of renewal of license) Management accounts until the 30th of November and annual audited accounts for the previous year (in the event for renewal)
  6. A statement by the directors on whether they have made a proper inquiry by them concerning the period of time between the date on which the accounts last were prepared and a date no more than 14 days prior to when the request was made.
    • the business of the firm has, according to them it has been successfully maintained
    • they believe that there have the company’s opinion, been any circumstances which have adversely affected the trading or the value of its assets
    • the existence of any potential liabilities as a result of any guarantee provided either by the business or one of its affiliates
    • since the last year’s annual accounts any modifications to reserve amounts or other peculiar circumstances that affect the profits of the company or its affiliates.
  7. Copy of bank guarantee must be submitted to an exchange of securities, or central depository (where it is applicable).
  8. A statement by a person who are authorized to sign it, and which is required to be included on the application form

Office Locations and Contacts

Capital Markets Authority8th Floor, Jubilee Insurance Centre
14. Parliament Avenue
P. O. Box 24565, Kampala, Uganda
Tel: +256 – 414 – 342788/91
Tel: +256 – 312 – 264950/1
Fax: +256 – 414 – 342803
Email: info@cmauganda.co.ug
Website:Uganda Capital Markets

  • Scroll down until at the end of page. Contact information is available.

Eligibility

  • It is not permitted for anyone to operate or declare himself to be carrying on business as a licensed securities dealer unless recognized as one through the Capital Markets Authority.

Fees

  • A fee for application of Ugshs. 100,000

Validity

  • The license granted is valid until it is cancelled or suspended from the Authority.
  • The Authority may suspend or cancel the license for a specified period of time or until the time of the occasion in the manner that the Authority can decide if a licensed person is found to be in violation of the rules.
  1. goes into liquidation , or the person is liquidated or an order issued to facilitate the winding down of the person who is licensed;
  2. Performs any other activity that is not within the limits of the licenced or authorized activities
  3. is a receiver or manager who is appointed to the entire or a significant part of the property owned by the company.
  4. It ceases to conduct its licensed operation for a time of not more than 30 days unless it has the consent by the Authority to continue to operate;
  5. one Director or employees has not, according to the view of the Authority or its key employees, performed their duties in a fair and honest manner;
  6. has violated or failed to observe any of the conditions in relation to the license
  7. is in breach of an instruction in the Authority;
  8. does not give the Authority with the information the Authority may require;
  9. False or misleading information is provided;
  10. in any other way for any reason whatsoever, is no longer an appropriate and qualified to be a holder of the license or license.
  11. is in violation of any other provisions of or governed by the Capital Markets Act.

Processing Time

  • Within 30 days of satisfying all conditions

Instructions

  • A request for a license or renewal or renewal of licenses must be submitted to the Authority on the prescribed format and be with the prescribed fee and in the instance the application is for renewal of the license the application must be submitted within three months, but not more than one month before the expiration date of the license.
  • The Authority could require applicants to provide additional details as it deems essential to an application.
  • A license can only granted only if the applicant meets and continues to meet the minimal financial and other requirements as are laid out by the Authority.
  • The Authority can grant a license with conditions or restrictions that it deems appropriate and the Authority can, at any time , by writing notification to a holder of a licence modify any restriction or condition, or impose additional conditions or limitations.
  • The Authority cannot refuse the granting of a licence without first giving the person who is applying or the owner of the license the opportunity to be heard.

The Information You Need

  1. Name of the company
  2. Registered office
  3. Date of incorporation
  4. Address
  5. Email
  6. Location, address , and phone number of the principal office
  7. Address, location and phone number of branches
  8. Information on capital structure
  9. Shareholders
  10. Directors
  11. Specifics about the different directorship(s) of directors and secretary
  12. Specifics of shares held by directors or the secretary in other companies.
  13. References to business
  14. Profil of chief executive officer and important employees of the company
  15. The office facilities of the candidate
  16. Define the precise nature of the business to be conducted, that requires the applicant to submit a request for a licence to the Capital Markets Authority.

The Document is required

  • A securities dealer who is authorized is an individual who is authorized to trade in securities and to operate in specific market segments as can be regulated by the Capital Markets Authority.

Information that can be useful

  • The checklists in this site provide a brief summary of the requirements for application in various kinds of applications that may be submitted to the Authority to be granted approval to operate as an intermediary in the market, a regulated establishment or issuer in Uganda’s capital market. Ugandan market for capital.
  • It is vital to know that:
  1. The checklists originate by reference to the legal requirements defined in the pertinent Regulations published in the Capital Markets Act and are meant to be a simplified guide. Candidates are advised to study and comprehend the legal requirements set out in the applicable Regulations. It is important to understand that the Regulations are the only definitive description of the application requirements. They can be found on the Regulations section of the site of the Capital Markets Authority.
  2. The Authority reserves the right to ask for any additional information which may be required in the process of reviewing an application.

External Link

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