Infractions stem from 10 types of breaches, with emphasis on the “duty to provide periodic information to the CMC within the established deadline.” Distributors are the main offenders of the regulator’s rules. The CMC continues to withhold the value of fines, which it has not disclosed since the first half of 2024.
The Capital Markets Commission (CMC) initiated a total of 29 sanctioning proceedings against entities operating in the capital market in the first half of this year, representing an increase of 107.14% compared to the 14 cases initiated in the previous semester, according to data obtained by Expansão based on CMC records.
These infractions result from 10 types of violations that breach Law No. 22/15 of August 31 (Securities Code – CodVM).
The most common breaches were the “duty to provide periodic information to the CMC within the established deadline” and the “duty of defective compliance with obligations of identification and due diligence, as well as total omission of enhanced due diligence measures for clients considered at higher risk of money laundering and terrorism financing,” both with eight cases recorded.
Other violations included: the duty to observe and execute orders under regulator conditions (3); the duty to disclose periodic information (quarterly and semiannual) required from issuers of shares (3); the duty to request registration of responsible management staff within the established deadline (2); the duty to inform the CMC about the contracting of new correspondents within the deadline (1); failure to fully disclose information to the market and omission of information to the regulator (1); duty to verify the legitimacy of ordering parties (1); duty to implement an Internal Audit service (1); and duty to report to the regulator operations on securities admitted to trading on a regulated market (1).
Of the 29 cases, 14 are ongoing, 8 resulted in warnings, 2 were archived, and 5 resulted in fines — though the value of the fines was not disclosed. The fact is that since 2024 the CMC has stopped publishing both the fine amounts and the list of institutions penalized. For reference, in 2023, the CMC collected about 326.0 million Kz in fines from offending institutions. The highest figure disclosed to date was 853.1 million Kz, recorded in 2021.
According to the Securities Code, fines range from 352,000 Kz to 392.5 million Kz — the lower value for minor infractions and the higher for very serious ones. It is worth noting that, by law, the CMC’s revenues include State Budget allocations, fees and charges collected, and fines resulting from sanctioning proceedings.
Distributors Lead in Violations
In terms of institutions, Securities Distribution Companies (SDVMs) were the main violators of the regulator’s rules, with 9 proceedings initiated, including one fine. Most of the breaches relate to defective compliance with obligations of identification and due diligence, and the total omission of enhanced due diligence measures for clients deemed at higher risk of money laundering and terrorism financing.
Also highlighted were failures in verifying the legitimacy of ordering parties, as well as in reporting to the regulator securities operations admitted to trading on the market.
Distributors are financial institutions that act as intermediaries in the capital market, facilitating the purchase and sale of securities between investors and entities seeking financing via the stock exchange. In Angola, however, this service was initially performed by banks since 2015, when the Debt and Securities Exchange of Angola (BODIVA) began operating.
This led the CMC in 2023, through Instruction No. 05/CMC/03-23 of March 21, to “require” banks to establish distribution companies to assume responsibility for brokerage on the stock exchange. As a result, distributors such as Áurea (owned by BAI) and BFA Capital Market (owned by BFA Bank) are market leaders in terms of trading volume, as they are backed by the country’s largest banks.
Source: Expansão
