Zambia's SEC and South Africa's Prudential Authority Forge Partnership to Strengthen Financial Oversight
The Securities and Exchange Commission (SEC) of Zambia proudly announces the signing of a landmark Memorandum of Understanding (MoU) with the Prudential Authority (PA) of South Africa. This agreement, formalized on December 2, 2024, marks a pivotal step in enhancing collaboration between the two regulators, focusing on the exchange of supervisory information to strengthen oversight of financial institutions in Zambia and South Africa.
Basis of the MoU
The partnership is rooted in the regulatory mandates of both institutions:
·SEC: As Zambia's capital market regulator, SEC operates under the Securities Act No. 41 of 2016 (amended by Act No. 21 of 2022), overseeing and developing the nation's capital markets.
·PA: Established under South Africa's Financial Sector Regulation Act No. 9 of 2017, the PA regulates banks, insurers, and other financial institutions to ensure stability and resilience in the financial sector.
The MoU aligns with key legislative provisions:
1.Zambian Securities Act: Sections 165(2) and 9 emphasize mutual cooperation with other regulators and the promotion of orderly and integrity-driven capital market growth.
2.South African Financial Sector Regulation Act: Section 251(3)(e) empowers the PA to enter cooperative agreements like this MoU for sharing regulatory information.
This collaboration is designed to facilitate the secure and efficient exchange of supervisory information between SEC and PA, strengthening their respective roles in maintaining robust financial systems.
Key Benefits of the MoU
The MoU is poised to deliver significant advantages for Zambia, South Africa, and the broader financial ecosystem:
Enhanced Information Sharing: The agreement establishes a framework for exchanging supervisory information, ensuring compliance with governing laws and regulations while aiding in the fulfillment of supervisory responsibilities.
Strengthened Financial Integrity and Soundness: By improving cross-border regulation, the MoU enhances the integrity and efficiency of financial institutions, mitigating fraudulent activities and other prohibited practices.
Proactive Supervisory Measures: Both regulators will share information on actual or anticipated breaches of laws or regulations, fostering timely intervention and resolution.
A Shared Vision for Stronger Capital Markets
This partnership signifies a shared commitment to fostering secure, efficient, and well-regulated financial markets in Zambia and South Africa. SEC and PA look forward to leveraging this collaboration to promote sustainable growth and enhance confidence in their financial systems.
The MoU is a testament to the power of cooperation in achieving shared goals, underscoring the importance of robust regulatory frameworks in today’s interconnected financial world.
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