Angola: Parliament Approves Draft Financial Institutions, Code of Securities Laws

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Luanda — The Angolan parliament approved, Thursday, in general, with 149 votes in favor, none against and 32 abstentions the proposals of the Financial Institutions Law and the proposal approving the Code of Securities with 147 votes in favor, none against and 36 abstentions.

The action of Members of Parliament occurred during the 4th ordinary plenary session of the 3rd Legislative Session, of the III Legislature of the National Assembly (AN), and the proposal of the Financial Institutions Law, regulates the establishment process, exercise of supervision, intervention process and the penalties of financial institutions.

In this context, the financial institutions that take the form of a public company are subject to the norms of the draft Law, without prejudice to provision of the Basic Public Business Sector Law.

The legislative initiative belongs to the head of State, José Eduardo dos Santos, and is intended to create the basis of the financial and banking system, in the form of Financial Institutions Basic Law, given the principle of formal adequacy of infrastructure constitutional requirements.

It is intended likewise to respond to the innovations made on the world and domestic financial system and provide the system of regulation and supervision of technically appropriate instruments to ensure the stability and robustness of the financial system, issued by the banking supervision Basel Committee on 2012. In its turn, the draft Law on the Securities Code, which at the time was presented by Finance Minister Armando Manuel, intends to reform the basic legal framework of the securities and derivatives market, regulating the securities, the eminent, public offerings, as well as the regulatory regime, which highlights the role of the supervisory body of the securities market.

The minister explained that given the international best practices, the law seeks to protect investors, securing efficiency, smooth operation and transparency of the securities market, prevention of systemic risk and promoting the development of the securities market and instruments derivatives.

The diploma also defines, clearly, the market regulation perimeter of securities and derivative instruments, he added.

SOURCE: AllAfrica, January 29th, 2015,