The Capital Markets Authority (CMA) has issued a public warning against individuals and entities operating as securities dealers without proper licensing.
In a public notice released by Lynn Tukei, the CMA’s head of public relations and communications, the authority emphasized that anyone dealing in securities must be formally approved under Section 50(1)(b) of the Capital Markets Authority Act.
“A dealer is any person who conducts business in securities on their own account. Acting in this capacity without a license is a violation of the law,” Tukei stated.
She further warned that the public should avoid transacting with unlicensed individuals or firms posing as dealers, adding that such activities are illegal and subject to prosecution.
“Any person acting as a dealer without a valid license is in breach of the Capital Markets Authority Act,” said Tukei.
“Those currently operating without licenses are advised to regularise their status immediately. Failure to comply will attract penalties, including criminal sanctions.”
The CMA clarified that its mandate includes licensing, approving, registering, and supervising all industry players in Uganda’s capital markets sector. The authority operates as an autonomous body established by an act of Parliament to develop and regulate the industry.
“Our mission is to foster transparent, accessible, and effective capital markets in Uganda,” the notice read.
This warning comes amid a growing number of complaints and concerns about unlicensed operators taking advantage of unsuspecting investors.
The CMA called on the public to remain vigilant and to always verify the regulatory status of any individual or firm offering securities services.
The authority advised anyone seeking to invest in Uganda’s capital markets to consult its official website or contact its offices directly for a list of approved dealers and licensed intermediaries.