Online Reporter
Martin Kadzere
The Insurance and Pension Commission (IPEC) Amendment Bill of 2024 will require asset managers to secure IPEC’s prior approval before providing services to clients in the insurance and pensions sector, adding a new layer of regulatory oversight.
Asset managers are currently regulated by the Securities Commission of Zimbabwe (SECZ).
The bill, which also seeks to expand IPEC’s regulatory powers to include medical aid societies, establish new governance structures and create a policyholder and pensions, and provide fund members protection, will require asset managers to secure IPEC approval before commencing services for insurance and pension sector clients.
Asset managers who are already serving clients in the insurance and pensions sector will require IPEC’s approval to continue doing so.
Market analysts say the new requirements would likely result in increased licensing, reporting, and operational costs for asset managers.
They have noted that IPEC’s new mandate to promote a “fair, safe, and stable” sector and to conduct investigations grants the commission significant oversight over asset managers. This means IPEC can scrutinise asset managers’ investment strategies, risk management practices, and client relationships.
IPEC can also conduct investigations into potential violations of the IPEC Act or other relevant laws, which could lead to penalties or sanctions.
