HomeNewsReprieve for ReNaissance Securities

Reprieve for ReNaissance Securities

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The Securities Commission of Zimbabwe (Secz) last week lifted the suspension on ReNaissance Securities after the firm provided the commission with a feasible recapitalisation.

However, if the securities firm fails to comply within a month the ban will be reinstated.

According to the Reserve Bank of Zimbabwe, securities companies are supposed to have a minimum capital of $500 000.

In a statement, Secz acting chief executive officer Cordelia Mutangadura said the commission, Zimbabwe Stock Exhange and Renaissance Securities worked together for a month after which the latter . submitted a report on recapitalisation to the commission that was approved by shareholders.

“As per the corrective order, the firm shall be submitting regular reports within specific timelines to Secz and these will be reviewed. Should the firm fail to comply with the terms of the corrective order then its suspension shall be automatically reinstated,” Mutangadura said.

A corrective order is a directive given by the regulator to the licensee to correct certain deficiencies, while continuing in business.

Mutangadura said the auditors’ report was submitted to the commission and adjudged, which then led to the issuance of a corrective order and the lifting of the suspension.

“Having been furnished with a feasible recapitalisation plan and an evaluation certificate on the going concern status by the firms’ auditors, Secz reached the conclusion that the firm be allowed to resume trading under strict monitoring in terms of the corrective order,” Mutangadura said.

ReNaissance Securities is a subsidiary of Renaissance Financial Holdings Holdings.

Another institution under the group, ReNaissance Merchant Bank, was recently placed under curatorship following the unaerthing of irregular transactions at the bank.

In a letter of suspension by the commission in June, Secz indicated that ReNaissance Securities was undercapitalised.

The commission, through the notice of suspension, called upon the company to come up with a recapitalisation plan which the company failed to submit between the inspection period May 24 to May 27.

The entire board of RFHL and ReNaissance Merchant Bank were fired by government due to failure to adhere to corporate governance issues.

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