Protocol between supervisory agencies ensures greater transparency in Angola’s financial sector

3 April 2014

Greater efficiency in using legal mechanisms in place to protect investors and greater transparency in supervision of the financial system is the aim of the protocol signed Wednesday in Luanda by the Capital Markets Commission (CMC) and by the Angolan Agency for Insurance Regulation and Supervision (Arseg).

At the end of the signing ceremony, Aguinaldo Jaime, the president of Arseg said that cooperation between the two institutions was born of a need to share information between insurance companies and the pension funds that provide a return on the capital they invest.

“CMC and Arseg have very close ties because when an insurance company invests its assets in the capital market that implies supervision by the agency for promotion of insurance and pension funds,” he said, cited by Angolan news agency Angop.

Jaime said it was essential to coordinate with the CMC in order to make operators’ activities easier and added that, “by making procedures more efficient we will have a coordinated and supervised market that allows us to control existing links between the banking market, insurance companies, pension and capital funds.”

Meanwhile, speaking at the 1st Annual Forum of Capital Markets the Arseg president said that as of this year companies would have an alternative to high interest rates charged by banks, which have so far been the main financiers of Angola’s economy.

“We welcome the diversification of the banking system because we have found that, often, investors have few alternatives beyond bank market applications,” he said. (macauhub)