Angola’s Capital Markets Commission has new regulations

14 February 2019

Some of the key pieces of the legal framework of the capital market in Angola were recently approved and came into effect on 5 February, the same day they were published, the China-Lusophone Brief (CLBrief) reported.

That news service on China and the Portuguese-speaking countries reported that one of these key pieces is the regulation that sets out operating conditions for management companies of regulated markets, clearing houses, centralised systems and securities settlement, under the Legal Regime of the Management Companies of Regulated Markets and Financial Services on Securities.

Citing the Regional Coordination of Legis-PALOP+TL database, CLBrief also said that under a presidential decree approving the new regulations of the Capital Markets Commission, these companies are required to increase their share capital up to a limit of 900 million kwanzas (about 2.5 million euros).

The Capital Markets Commission (CMC) has been operating for a long time and has its own staff, but the capital market in Angola has so far been limited to trading Treasury bills and bonds, with not a single share being listed.

But this may change following a programme of partial or total privatisation of 74 public companies, which will be carried out through the Angola Debt and Stock Exchange (Bodiva), based on a government decision to ensure the process is transparent.

Another part of the legal framework is Regulation 2/19, which implements the procedures for constitution and prior registration in the CMC, which must be followed by Venture Capital Investment Companies, Venture Capital Funds and Venture Capital Investors, which are required to have a minimum share capital of 40 million kwanzas (about 100,000 euros).

Regulation 3/19 specifies the process of prior authorisation for Securitisation Investment Companies and Securitisation Investment Funds to follow, which are also required to have a minimum share capital of 40 million kwanzas (about 100,000 euros).

The final regulation to be approved, 4/19, stipulates the rules applicable to Asset Management Companies, non-banking financial institutions linked to the capital market and the investments they are subject to, for the purposes of authorisation for constitution and registration to start operating within the CMC, and applicable to the Regulation on Brokerage Agents and Securities Investment Services. (macauhub)