Financial Markets Intermediaries Bill scrutinised

Financial intermediaries or stockbrokers are expected to play a greater role in channelling household savings to the Douala Stock Exchange and other capital markets where government and companies can raise financing for their major investment projects.

Members of the Committee on Finance and the Budget of the National Assembly have started scrutinising a bill governing financial intermediaries’ activities known as “undertakings for collective investment in transferable securities” (UCITS) in Cameroon.

Appearing yesterday, June 20, 2016, before the Finance Committee chaired by Hon Ayayi Rosette Julienne to defend the bill, Finance Minister Alamine Ousmane Mey underscored the importance given by government to the necessity to promote economic funding to implement Cameroon’s 2035 vision.

Households with substantial savings could be a haven for such funding but they lack the required expertise to handle stock exchange transactions to invest in transferable company shares or securities.

Hence, government saw the need to put in place a permanent framework to help promote the collective management of securities carried out through UCITS.

Minister Ousmane Mey explained that the new law which comprises 95 Sections divided into 12 Chapters will, amongst others, channel the savings of small investors to capital markets, facilitate fundraising by the State and other companies to finance projects as well as revitalise the activities of the Douala Stock Exchange.

He was assisted by the Minister of Labour and Social Security, Gregoire Owona, representing the Vice Prime Minister, Minister Delegate at the Presidency in charge of Relations with the Assemblies, Amadou Ali.