The Securities and Exchange Commission of Zimbabwe (SECZ) says it will soon introduce online trading and reporting of securities transactions and investments for the capital markets to promote financial inclusion and deepen local capital markets.
SECZ chairman Tafadzwa Chinamo told business leaders at the rebranding of Old Mutual Custodial Services on Wednesday that the commission was working on a number of initiatives to widen participation in capital markets by locals.
“The commission believes this development will allow investors to trade and can benefit from stock market bull runs as well receive reports on their investments timeously,” he said.
Zimbabwe has four licensed custodians who, as December 2016, had $2,6 billion worth of assets under custody. Chinamo said following the bull run in the last one and half months, it was estimated that $3 billion in assets were under custody.
Old Mutual Custodial Services, which was rebranded to CABS Custodial Services, holds 50 percent of the assets under custody, making it the largest custodian in Zimbabwe. The unit was born out of a demerger from the group’s asset management company in 2000.
CABS managing director, Simon Hammond, said the rebranding would allow for the Custodial Services unit to take advantage of the bank’s structures while operating as a separate company regulated by SECZ.
CABS is the Old Mutual Group’s banking outfit and Zimbabwe’s largest mortgage lender.
“From small beginnings sixteen years ago our business has seen significant growth and marked improvement of the assets under custody. Starting assets around $740 million in 2010, our book has since grown to $1,4 billion worth of assets by end of May 2017,” said Hammond.