BSE lifts Stockbrokers suspension
Isaac Pinielo | Tuesday November 22, 2016 17:20
SBB, which is one of the country’s oldest and leading brokerage firms, was suspended in August after being found to have breached the bourse’s rules and regulations.
BSE’s market development manager, Thapelo Moribame said the suspension was lifted upon being satisfied that all the compliance issues so far as the BSE and the Central Securities Depository of Botswana (CSDB) were met.
“The suspension was lifted effective the 19th November, 2016,” she said. She confirmed that the brokerage firm was suspended from trading due to non-compliance with certain regulatory aspects which form an integral aspect of its (SBB) ability to trade on the stock exchange.
She noted that the issues that relate to the ability of SBB to trade on behalf of investors have been met, hence the reinstatement.
Moribame clarified that the BSE had acted independently in the suspension of SBB from trading following a close monitoring of issues of a compliance nature.
She noted that following the suspension, SBB was placed under statutory management adding that the statutory manager worked on assisting SBB to regularise all compliance issues, and that part of this process included engaging with the BSE to find out what was required for the suspension to be lifted.
“Once all the compliance requirements were met, BSE was satisfied that SBB can trade on behalf of investors,” she said.
At the time of the suspension, SBB said it had requested for the suspension due to substantial accounting backlog, which dated back six months.
“Our accounting function was dysfunctional due to absence of a substantive finance manager for a period of six months which resulted in accounting backlog. We felt its necessary to halt all trading activities until the backlog is fully addressed,” read part of the statement.
In addition, SBB noted that a new finance manager identified was awaiting completion of the vetting process by Non-Bank Financial Institutions Regulatory Authority (NBFIRA).