Self Assessment – Ethiopian Capital Market Authority

Welcome to the self-evaluation form for prospective Capital Market Service Providers. This tool allows a prospective capital market service provider to assess their standing as it relates to the Capital Market Service Providers Licensing and Supervision Directive. If you encounter any issues, please don't hesitate to contact us for assistance at licensing@ecma.gov.et call 011-5-57-83-11 ።

መመሪያዎች:

Applicants are required to complete this self-assessment form before submitting their application for a Capital Market Service License ("Service License").
The self-assessment form is a guide to help prospective applicants assess their level of readiness for the service license, as well as their compliance with the due diligence, governance, and specific requirements set for each respective service license.
A positive response or outcome on the completed self-assessment form does not guarantee that the applicant will be granted the service license.
All parts of the self-assessment form relevant to the applicants must be completed. Fill in the responses in the appropriate box; and if necessary, mark a √ (check mark).፡
The symbol (*) means is mandatory to individual applicants.
The symbol (N/A) means not applicable.

Section 1: General Information

I. Do you have a Commercial Registration Certificate or Investment Permit issued by the relevant government organ in Ethiopia?
Yes No
The Applicant must have a Commercial Registration Certificate or an Investment Permit issued by a relevant government organ in Ethiopia.

II. Do you have a Registered/Business Address?
Yes No
The applicant must have a registered/business address.

Section 2: Incorporation Type

Choose your incorporation type:-

Section 3: Prudential Requirements

SECTION 3.1: Prospective Services Lisense(s) and Capital Requirement

Prospective Services License፡- Please select the Services License that you want to apply for: (Hold down the CTRL key to select multiple licenses)

ከአንድ በላይ የአገልግሎት ፈቃድ ለመምረጥ የCTRL ቁልፍን መጠቀም ይችላሉ

Selected Prospective Licenses-

Total Net-worth needed for all the selected licenses፡ 0

3.2: Asset Mix Ratio

#	Identifier	Birr '000,000
1. Liquid Asset(A)		-
1.1	Cash
1.2	Bank deposits
1.3	Treasury bills
1.4	Listed securities
1.5	Other liquid assets
1.5.1	(please specify)
Total Liquid Assets		0
2. Total Assets (B)
Ratio of Liquid Assets to Total Assets		0

Section 4: Governance Requirements

4.1 Governance Structure

Governance Structure:

4.1.1. Does the applicant have at least three Board of Directors? Yes No N/A The applicant must have at least three Board of Directors.

4.1.2. Do the Directors meet the required qualifications stated in the Competency Framework of the Capital Market Service Providers Licensing and Supervision Directive?
Yes No N/A
The Directors must meet the required qualifications stated in the Competency Framework of the Capital Market Service Providers Licensing and Supervision Directive.

4.1.3. Is there a Board Charter?
Yes No N/A
The applicant must have a Board Charter.

4.1.4. Is the position of Chairperson and Managing Director/Chief Executive Officer separate?
Yes No N/A
The position of Chairperson and Managing Director/Chief Executive Officer must be separate.

4.1.5. Does the Managing Director/Chief Executive Officer meet the required qualifications stated in the Capital Market Service Providers Licensing and Supervision Directive?
Yes No N/A

4.1.6. Does the Board of the applicant have the following Sub-Committees?

4.1.6a. Nomination and Election Committee
Yes No N/A The Board of the applicant must have a Nomination and Election Sub-committee.

4.1.6b. Risk Management and Compliance Committee
Yes No N/A

The Board of the applicant must have a Risk Management and Compliance Sub-committee.

4.1.6c. Audit Committee
Yes No N/A

The Board of the applicant must have an Audit Sub-committee.

4.1.7. Does the applicant have a Company Secretary or its equivalent?
Yes No N/A
The applicant must have a Company Secretary or its equivalent.

Section 5: Other Operational Requirements

5.1 Operational Readiness

5.1.1. Infrastructural Facilities:

5.1.1a. Is the applicant’s business premises ready for operations?
Yes No N/A

The applicant's business premises must be ready for operations.

5.1.1b. Are there IT hardware configurations and software applications?
Yes No N/A

There must be IT hardware configurations and software applications to operate.

5.1.1c. Are there telephones and voice recording devices?
Yes No N/A

Telephones and voice recording devices must be in place.

5.1.2. Record Keeping

5.1.2a. Does the applicant have appropriate systems and procedures for storing and retrieving information?
Yes No N/A

The applicant must have appropriate systems and procedures for storing and retrieving information.

5.1.2b. Does the applicant have an internal document retention policy?
Yes No N/A

The applicant must have an internal document retention policy.

5.1.3. Operational Procedures and Requirements

5.1.3a. Does the applicant have a detailed operations manual?
Yes No N/A

The applicant must have a detailed operations manual.

5.1.3b. Does the applicant have a securities trading policy?*
Yes No N/A

The applicant must have a securities trading policy.

5.1.3c. Does the applicant have proprietary trading policy?*
Yes No N/A

The applicant must have a proprietary trading policy.

5.1.3d. Does the applicant have a code of conduct/ethics for employees?*
Yes No N/A

The applicant must have a code of conduct/ethics for employees.

5.1.3e. Does the applicant have a conflict of interest policy?
Yes No N/A

The applicant must have a conflict of interest policy in place.

5.1.3f. Does the applicant have a compliance manual?*
Yes No N/A

The applicant must have a compliance manual.

5.1.3g. Does the applicant have an AML/CFT manual?*
Yes No N/A

The applicant must have an AML/CFT manual.

5.1.3h. Does the applicant have a dispute resolution framework?
Yes No N/A

The applicant must have a dispute resolution framework.

5.1.3i. Is the applicant a member of a recognized SRO or industry association?
Yes No N/A

The applicant must be a member of a recognized SRO or industry association.

5.1.3j. Does the applicant have a standard KYC procedure?
Yes No N/A

The applicant must have a standard KYC procedure.

5.1.3k. Does the applicant have a fidelity guarantee or commenced the process of obtaining one?
Yes No N/A

The applicant must have a fidelity guarantee or have commenced the process of obtaining one.

5.1.3l. Does the applicant have a strategic business plan?
Yes No N/A

he applicant must have a strategic business plan.

5.1.3m. Does the applicant have a full year Audited Financial Statement or Statement of Affairs or three (3) months Management Account?*
Yes No N/A

The applicant must have a full year Audited Financial Statement or Statement of Affairs or three (3) months Management Account.

5.2 Technology Requirements

5.2.4. Systems and Control:

5.2.4a. Does the applicant have procedures and satisfactory risk management systems, and compliance systems aimed at preventing, detecting, and correcting securities law violations?
Yes No N/A

The applicant must have procedures and satisfactory risk management systems and compliance systems aimed at preventing, detecting, and correcting securities law violations.

5.2.4b. Does the applicant have a disaster recovery and business continuity procedure?
Yes No N/A

The applicant must have a disaster recovery and business continuity procedure.

5.2.4c. Does the applicant have a data privacy policy?
Yes No N/A

The applicant must have a data privacy policy.

5.2.4d. Does the applicant have in place procedures to deal with cyber risks?
Yes No N/A

The applicant must have in place procedures to deal with cyber risks.

5.3 Human Resource Requirements

5.3.5. Employees:

5.3.5a. Has the applicant identified the individuals to be appointed as Appointed Representatives for the Services License(s)?
Yes No N/A

The applicant must have identified the individuals to be appointed as Appointed Representatives for the Services License(s).

5.3.5b. Does the applicant have a Compliance Officer?
Yes No N/A

The applicant must have a Compliance Officer.

5.3.5c. Does the applicant have adequate employees in terms of number, qualification and experience to operate the company?
Yes No N/A

The applicant must have adequate employees in terms of number, qualification, and experience to operate the company./label>

SELF-EVALUATION FOR PROSPECTIVE CAPITAL MARKET SERVICE PROVIDERS