Securities Commission calls for licence renewals
BY PRISCILLA HARRY
Securities Commission of Papua New Guinea (SCPNG) calls on capital market entities to renew their licenses.
The acting Chairman of SCPNG Alex Tongayu, said all market intermediaries in the capital market of the private sector must own a trustee license inorder to operate in the country.
Recently, the commission has renewed the trustee License of Kina Nominees Limited under section 37 and 189 of the Capital Market Act 2017.
Kina Nominees Limited was issued with a trustee license in 2004, under the repealed securities Act 1997, which expired on 17 December 2017.Kina Nominees Limited is an experienced trustee and Fund manager where it currently has over K1billion in fund management and investment portfolios under its belt.
Under the Securities Act 1997, the SCPNG only licenses the Port Moresby Stock Exchange and Trustee Companies involved in the Unit Trust Industry.
“It does not have the powers under the current law to issues licenses to other market intermediaries such as Fund Managers, Stock Brokers/Dealers, Investment Advisors, and Underwriters ETC,” Tongayu said.
The Bank of Papua New Guinea regulates the Banking, Savings & Loan Societies, Superannuation Funds, and related Industry, including Life Insurance.
BPNG also regulates the money markets and government issued securities, such as Treasury Bills, government bonds.
“Kina was one the existing license trustee; due to their operation just like the others, their license was expired therefore, we renewed their taxation license,” Tongayu said.
“In terms of the market, when you look at the overall picture of the capital market cover the banking system and the Bank of Papua New Guinea banks looks after the banking and financial system while SCPNG looks after the Capital market,” Tongayu said.
“The capital market deals with the private sector,” Tongayu said.
He said the market is very sensitive because any information that comes up on the market affects the performance of the stocks, value of the share in any investments that why we set high standards of rules and regulations to influence that licensed entities will comply with the rules.
Tongayu said in 2008, they had a big financial crisis that was because data was not informed and the flow of finance for the economy was fluctuated especially in the private sector.
For 2019, SCPNG is focused to regulate their budget and want to educate people on the type of market intermediaries.
“Certain license holders need their licenses to provide good capital for their products for example
at the moment; there are only two stock brokers, Kina Securities and BSP Capital Limited. They are the only members of the Port Moresby Stock Exchange and wholly own the Exchange,” Tongayu added.
“If you have a company that is being registered and needs a license to gain control over the board of directors for a smooth flow of business, simply get it registered,” he said.
Since the Act in 1997 was established the only challenges SCPNG faced was that Papua New Guineans were illiterate and the commission want to provide awareness to reach outside centres by using websites , social media and mass media platforms.
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