How To apply for a Brokers/Dealers License in Uganda

To apply for a Brokers/Dealers License in Uganda, follow these detailed steps and requirements:

Procedure to Apply for Brokers/Dealers License

1. Prepare Required Documents:
   • Completed Form 1 (for brokers) or Form 2 (for dealers), signed by the applicant.
   • Certified copy of Articles and Memorandum of Association.
   • Certified copy of Certificate of Incorporation.
   • Organizational structure.
   • Complete CVs and colored passport photos of Board of Directors and Senior Management Staff.
   • Copies of identification cards/passports for all directors and staff.
   • Capital requirement proof:
     • Paid-up capital and reserves of at least UGX 15,000,000 to 20,000,000 for a dealer.
     • Net capital of UGX 50,000,000 for a stockbroker.
   • A full set of latest audited financial statements.
   • A comprehensive business plan.
   • Internal controls documentation (risk management, operational controls, procedures manuals).
   • Contact details of three independent referees supporting the application.
   • Evidence of payment of fees (application fee, license fee, renewal fee).
   • Evidence of a Taxpayer Identification Number (TIN).
   • Copy of the current bank statement.
   • Certificate of good conduct from the police for all Directors.
   • Details of the custodian bank(s) in Uganda.
2. Complete Application Forms:
   • Fill out Form 1 or Form 2, depending on whether you are applying as a broker or dealer.
   • Ensure all information is accurate and up-to-date.
3. Payment of Fees:
   • Proceed to the bank to pay the prescribed application and license fees. Attach the bank payslip to the application before submission.
4. Submission of Application:
   • Submit the completed application form along with all required documents and the bank payslip to the Capital Markets Authority (CMA) in Uganda.
   • Obtain a claim slip/stub as acknowledgment of submission.
5. Processing Time:
   • The CMA will consider the application and inform the applicant of its decision within 45 days after submission of a complete application. If incomplete, the 45-day period starts from the time a complete application is submitted.
6. Decision Notification:
   • The CMA will notify the applicant of the decision regarding the license application within the stipulated timeframe.
7. Compliance and Further Requirements:
   • Ensure compliance with all regulatory requirements as specified by the CMA.
   • Upon approval, the applicant will be granted a Brokers/Dealers License.
   • The license is valid for one year and may be renewed annually upon application to the Authority.

Office Locations & Contacts

Capital Markets Authority – Head Office

• Uganda Business Facilitation Center, 8th Floor, 1 Baskerville Avenue, Kololo, Uganda
• Postal Address: P. O. Box 24565, Kampala, Uganda
• Fax: +256 414 342 803
• Phone: +256-414-342788/91, +256-312-264950/1
• Email: [email protected]
• Website: Capital Markets Authority Uganda

Eligibility

• The license is available to institutions committing funds for investment as principals in securities dealings.

Fees

• Application Fees: 500,000 UgShs
• License Fee: 500,000 UgShs
• Renewal Fee: 1,500,000 UgShs

Validity

• The license is valid for 1 year and can be renewed annually upon application.

Instructions

• The license is personal and non-transferable.
• Notify the Authority promptly of any changes in management or other key details.
• Ensure compliance with all regulations during the license period.

This procedure outlines the steps and requirements necessary to apply for a Brokers/Dealers License in Uganda. Ensure all documents are accurately prepared and submitted to facilitate a smooth application process. For further details, contact the Capital Markets Authority directly.