HARARE Ugandan authorities have suspended Zimbabwean-owned ReNaissance Capital from trading with indications the firms licence could be revoked if it does not act urgently to meet certain statutory requirements including ensuring capital adequacy.ReNaissance Capital, a registered stockbroker and fund manager in Uganda, is owned by the Harare-based ReNaissance Financial Holdings. In a statement last week Japheth Katto, the chief executive officer of Ugandas Capital Markets Authority (CMA), said ReNaissance Capital was suspended from trading to enable the entity rectify compliance breaches including failure to meet their statutory requirements of capital adequacy and record keeping.
Katto warned that if they (ReNaissance Capital) dont comply with the statutory requirements, we can take up other options. One of them is to revoke the licence. The CMA is also said to have cited Renaissances slow procedure in settling clients claims while concerned about its shareholder funds which it said had fallen significantly below the statutory requirement of Shs150 million despite the Harare holding company having injected Shs2 billion into its subsidiary.
There was no immediate comment from ReNaissance Financial Holdings on the goings on at its Uganda arm.
‘The ReNaissance discussed in this article is in no way affiliated with the leading investment bank Renaissance Capital that has operations in Nigeria, Kenya, Zimbabwe, Zambia and Ghana as well as in Russia, Ukraine and Central Asia.’
Post published in: Mining