Uganda - Obtain Fund Manager License

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Procedure

Apply In-Person

1. To obtain a fund manager license, the applicant has to contact the Capital Markets Authority offices.You can visit their website on the following link Uganda Capital Markets
2. The applicant should also state whether he/she has the adequate professional, technical and operational ability to perform the functions of a fund manager;
3. The applicant has to make sure he or she has all the required documents that are required for this process to be successful and they can be found under the "Required Documents" section of this page.
4. The application should contain or be accompanied by any other information that the Authority may require for the purpose of determining the application;
5. The application should contain the address of a place in Uganda for the service on the applicant of any notice or document required or authorized to be served on the applicant under this Act;
6. The Application should be accompanied by the prescribed fee. Payment of appropriate fees should be made and that can be found under the "Fees" section of this page or in the Capital Markets Authority.
7. On completion of this process, The Authority may grant a license to an applicant who meets the requirements specified in the ordinance.
8. Capital Markets Authority will notify the applicant on any outstanding issues 14 working days after lodging an application and if there are no issues, the Authority will issue to the applicant a license within 30 working days.
9. The Authority shall publish in the Gazette and in a newspaper with wide circulation, a list of all licensed fund managers, at least once in every year.

• Note: A person who acts as a fund manager of a retirement benefits scheme without a license issued under this Act commits an offence and is liable on conviction to a fine not exceeding one thousand currency points or imprisonment not exceeding six years, or both.

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Required Documents

1. Application form
2. Memorandum and articles of association
3. Certificate of incorporation
4. Business plan complying with the requirements of regulation (Investment adviser and fund manager) of the Capital Markets Authority (Licensing Requirements) (General) Regulations.
5. A statement of the un-audited accounts for the period of accounting year ending not earlier than six months prior to the date of application and audited annual accounts for the preceding two years (in the case of application of license), management accounts up to the 30th November and audited annual accounts for the preceding year(in the case of renewal of license)
6. A declaration by the directors as to whether after due enquiry by them in relation to the interval between the date to which the last accounts have been made and a date not earlier than fourteen days before the date of the application
   • the business of the company has, in their opinion, been satisfactorily maintained
   • there have, in their opinion, arisen any circumstances adversely affecting the companys trading or value of its assets
   • there are any contingent liabilities by reason of any guarantees given by the company or any of its subsidiaries
   • there are, since the last annual accounts, any changes in published reserves or any unusual factors affecting the profit of the company or any of its subsidiaries.
7. A copy of the bank guarantee to be lodged with the securities exchange or the central depository (where applicable).
8. A declaration by persons authorized as prescribed to accompany the application form.

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
Tel: +256 - 312 - 264950/1
Email: info@cmauganda.co.ug
Website:Link

Uganda Registration Services Bureau - Head Office,
Uganda Business Facilitation Centre
Plot 1 Baskerville Avenue,
Kololo,
Kampala
Toll Free: 0800 100 006
Call Center: +256 417 338 100
Phone: +256 414 233 219 / 0417338000
Fax: +256 414 250 712
Email: ursb@ursb.go.ug (General Correspondences)
Email: helpdesk@ursb.go.ug (For Enquiries)
Website:Link

Eligibility

• No person is allowed to carry on or hold himself out as carrying on business as an investment adviser unless he is approved as such by the Capital Markets Authority.

Fees

• An application fee of Ugshs. I00,000/=
• License fee is Ugshs. 3,500,000/=

Validity

• A licence issued to a fund manager shall be valid for one year and shall be renewed annually upon payment of the prescribed fee.
• An application for the renewal of a licence under subsection (1) shall be made at least three months before the expiry of the licence.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• Within 30 working days upon meeting all the requirements.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

1. An application for a license or for the renewal of a license should be made to the Authority in the prescribed form and should be accompanied by the prescribed fee and in the case of an application for the renewal of a licence, may be made within three months but not later than one month prior to the expiry of the license.
2. The Authority may require an applicant to supply such further information as it considers necessary in relation to the application.
3. A licence is only be granted if the applicant meets and continues to meet such minimum financial and other requirements as may be prescribed by the Authority.
4. The Authority may grant a licence to such conditions or restrictions as it thinks fit and the Authority may, at any time by written notice to a licence holder, vary any condition or restriction or impose further conditions or restrictions.
5. The Authority will not refuse to grant a licence without first giving the applicant or holder of a licence an opportunity of being heard.

Required Information

1. Name of company
2. Registered office
3. Date of incorporation
4. Address
5. Email
6. Location, address and telephone number of principal office
7. Location, address and telephone number of branch offices
8. Details of capital structure
9. Directors
10. Particulars of other directorship(s) of the directors and secretary.
11. Particulars of shares held by directors or secretary in other companies
12. Business references
13. Profile of the chief executive and key employees in the applicant company
14. List the office facilities of the applicant
15. State the exact nature of the activity to be carried on which obliges the applicant to apply for a licence from the Capital Markets Authority.

Need for the Document

• A fund manager is a manager of a collective investment scheme, registered venture capital company or an investment adviser who manages a portfolio of securities in excess of an amount prescribed by the Authority from time to time.

Information which might help

A person shall not be licensed as a fund manager of a retirement benefits scheme if he or she

1. has been sentenced to imprisonment by a court of competent jurisdiction for six months or more;
2. is declared bankrupt or insolvent, or has entered into an arrangement with his or her creditors;
3. was previously involved in the management or administration of a retirement benefits scheme whose licence has been revoked under this Act due to his or her fault either fully or partially;
4. is disqualified under any other written law, or his or her holding office as such is determined by the Authority as being, in any way, detrimental to the retirement benefits scheme; or
5. is not a fit and proper person as prescribed in Part II of Schedule 3.
   • The checklists contained in this procedure reflect a summary of application requirements for various categories of applications that can be made with the Authority for approval to operate as a market intermediary, approved institution or issuer of securities within the Ugandan capital market.

It is important to note that:

• The checklists are derived from the statutory requirements as set out in the relevant Regulations issued under the Capital Markets Act and are intended only as a simplified guide. Applicants are advised to read and understand the statutory requirements detailed in the relevant Regulations. The Regulations are the only conclusive statement on application requirements and can be accessed in the Regulations of this Capital Markets Authority website.
• The Authority reserves the right to request for any additional information that may be deemed necessary during the course of review of an application.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• External Link

Others

• The licence granted can be suspended or revoked by the Authority.
• The Authority may suspend or revoke a license, for such period or until the occurrence of such event as the Authority may specify if a licensed person

1. goes into liquidation or an order is issued for the winding up of the licensed person;
2. carries out any activity outside the scope of the licensed or approved activities;
3. has a receiver or a manager appointed on all or a substantial part of the property of the company;
4. ceases to carry on the licensed business for a period of more than thirty days unless it has obtained the approval of the Authority to do so;
5. any of its directors or key employees has not, in the opinion of the Authority, performed their duties honestly and fairly;
6. has contravened or failed to comply with any condition applicable in respect of the license;
7. fails to comply with a direction of the Authority;
8. fails to provide the Authority with such information as it may require;
9. provides false or misleading information;
10. for any other reason, is no longer fit and proper person to hold a license; or
11. is in breach of any other provision under the Capital Markets Act.