Ricochet News

MTN ZAKHELE: MTN responds to the Financial Services Board directive regarding exchanges

Aug 13, 2014
MTN ZAKHELE: MTN responds to the Financial Services Board directive regarding exchanges

Prior to commencing operation of the trading platform in November 2013, MTN Zakhele was granted a temporary exemption by the FSB to operate its over-the-counter (OTC) trading system offered through an online trading platform and call centre, Thulani Gcabashe, Chairman, MTN Zakhele, has said in a statement.

MTN Zakhele was set up in 2010 as a vehicle for previously disadvantaged South Africans to invest in the MTN Group, a leading emerging markets mobile operator.

“During July 2014, the FSB issued a Directive which requires, amongst other things, operators of OTC platforms to apply for a licence to operate an exchange or for an exemption. As a result of MTN Zakhele's existing exemption, MTN Zakhele is currently allowed to continue operating.

“The FSB has subsequently informed MTN Zakhele that the existing exemption will expire on 31 August 2014 and that MTN Zakhele may apply for a new exemption.   MTN Zakhele understands that other operators of OTC trading systems have received similar correspondence from the FSB,” said Gcabashe.

He said that MTN Zakhele will apply for a new exemption before the current one expires.

“MTN Zakhele will submit an application for a new exemption before the expiry of the current exemption. After reviewing the requirements for an application for exemption, we are confident that the application will be positively received and we have no reason to believe that it will be declined,” said Gcabashe.

“MTN Zakhele shareholders will be kept abreast of any further developments with the FSB.  We will ensure that we remain legally compliant and we will respond appropriately to FSB requirements in order to continue to provide a controlled, secure and cost-effective platform for MTN Zakhele shareholders to trade.”

Photo Caption: Thulani Gcabashe, Chairman, MTN Zakhele.