Africa Alliance Uganda limited has said they will not be able to renew its stock broker license with the Uganda Capital Markets Authority (CMA) and will only be focusing on the investment Advisor under CMA.
The Company is licensed by CMA Uganda as a broker and investment advisor under the CMA Act CAP. 84 laws of Uganda.
“We regret to notify our brokerage clients and the general public that the Company will not renew its broker license with CMA Uganda, and will therefore cease to offer the service effective 30 April 2019 when the current license expires,” statement released a few days back states.
While speaking at a press conference held at Uganda Security Exchange (USE) Offices in Kampala, the Uganda Alliance CEO Kenneth Katariko said the decision came after a considerable discussion with the shareholders who believed the Stock Brokerage arm of the company was no longer making reasonable profits and hence no need to continue participating in it.
Katariko announced that the Company will transfer its Securities Central Depository (SCD) account to UAP Old Mutual Financial Services Limited.
“We request all our brokerage clients to contact the Company urgently to enable them transfer their respective SCD accounts to any other broker of their choice. This exercise will take place from Friday 12 April 2019 to Monday 06 May 2019. Clients’ SCD account that are not transferred by 06 May 2019 will have their accounts transferred to UAP Old Mutual Financial Services Limited,” he said.
Paul Bwaiso, the CEO, USE while speaking at the same event said it was unfortunate that Africa Alliance had to exit the market considering the contribution they had made in the development of the stock brokerage market.
“We have established a lot together over the 15 years…In numbers alone, they have traded over Shs920 billion in the past 10 years, opened 5612 SCD accounts making up 17% of the clients on the Exchange,” Bwiso said.
The CEO UAP Uganda, Simon Mwebaze said the company was ready to take up the clients’ and other businesses of Africa alliance’s brokerage arm because they have enough experience in that market.