CMA cancels Fidelity license
Capital Markets Authority (CMA) has withdrawn the broker/dealer license issued to Fidelity Capital Management over failure to carry out business.
By Sylvia Juuko
Capital Markets Authority (CMA) has withdrawn the broker/dealer license issued to Fidelity Capital Management over failure to carry out business.
A Monday media notice, the CMA warned the public against transacting business with the firm. “As a result of the revocation, Fidelity Capital is not permitted to carry on any securities business in Uganda.
“Any person that deals with Fidelity Capital does so at their own risk,†the CMA notice read. Japheth Katto, the CMA chief executive officer, explained that the action was taken to protect the public.
He said Fidelity was granted an investment advisor, broker/dealer license in 2008 but had not been admitted as a member on the bourse to transact business.
“We have not seen any activity since we issued the license. “We thought it prudent to revoke the license so as to protect the public.
“They have also not been admitted as members to the Uganda Securities Exchange,†Katto noted. He added that Fidelity would need to re-apply for a new license if it were to commence business for, which it was licensed to do.
“We gave them all the reasonable time to respond but we did not get a satisfactory explanation. “If they want to come back to the market, they have to start the process afresh,†Katto added.
Earlier in the year, CMA did not renew MBEA Brokerage Services license, following its failure to meet the minimum capital requirement
According to CMA rules, a dealer/brokerage firm should hold sh15m in minimum capital, an indicator of the firm’s financial health.
Capital Markets Authority (CMA) has withdrawn the broker/dealer license issued to Fidelity Capital Management over failure to carry out business.
A Monday media notice, the CMA warned the public against transacting business with the firm. “As a result of the revocation, Fidelity Capital is not permitted to carry on any securities business in Uganda.
“Any person that deals with Fidelity Capital does so at their own risk,†the CMA notice read. Japheth Katto, the CMA chief executive officer, explained that the action was taken to protect the public.
He said Fidelity was granted an investment advisor, broker/dealer license in 2008 but had not been admitted as a member on the bourse to transact business.
“We have not seen any activity since we issued the license. “We thought it prudent to revoke the license so as to protect the public.
“They have also not been admitted as members to the Uganda Securities Exchange,†Katto noted. He added that Fidelity would need to re-apply for a new license if it were to commence business for, which it was licensed to do.
“We gave them all the reasonable time to respond but we did not get a satisfactory explanation. “If they want to come back to the market, they have to start the process afresh,†Katto added.
Earlier in the year, CMA did not renew MBEA Brokerage Services license, following its failure to meet the minimum capital requirement
According to CMA rules, a dealer/brokerage firm should hold sh15m in minimum capital, an indicator of the firm’s financial health.