Intermarket Unit Trust not part of seizure, says BoZ

BOZ building.

FOLLOWING the possession of Intermarket Banking Corporation by the central bank, the Securities and Exchange Commission (SEC) has assured that the possession does not include Intermarket Unit Trust, which is a collective investment scheme managed by Intermarket Securities Limited.
And Barclays Bank Zambia has with immediate effect suspended the processing of transactions or cheques relating to Intermarket Banking Corporation, which the Bank of Zambia (BoZ) took over last Tuesday, citing low capital requirements and breaching of the law including engaging in conduct that was deemed unsafe and unsound in banking.
Commenting on the matter last Friday, SEC acting chief executive officer Diana Sichone said Intermarket Unit Trust (IUT) collective investment scheme is a separate entity authorised by the securities Act.
“The Commission [SEC] can confirm that it has not withdrawn its authorisation of the IUT collective investment scheme. Assets of the collective investment scheme are required to be kept under custody, and in this case, the custodians are Standard Chartered Bank Plc.”
“The IUT collective investment scheme assets which are under custody with the custodian are secure. In order to further secure the interests of investors in the IUT collective investment scheme, the investing public is informed that AMG Global Trust Limited, the trustee for IUT scheme, has with effect from November 29, 2016 appointed African Life Financial Services Zambia as an interim manager,” she said.
Ms Sichone said SEC has approved the appointment and the interim manager is currently putting in place operational modalities to facilitate normal business of the IUT collective investment scheme fund in the shortest possible time.
And AMG Global Trust Limited representative Friday Nyambe said African Life Financial Services will communicate to all Intermarket unit holders the revised operational modalities in due course.
The BoZ stated that the move to take over operations at Intermarket is aimed at safeguarding the interests of depositors and preserving the integrity of the financial system.
Some customers of the possessed bank have, however, been demanding to withdraw their money from their accounts, which they could not access.

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