Investment service providers in Cameroon are licensed entities or professionals that facilitate the allocation of capital into financial markets. They offer services like asset management, stockbroking, and portfolio construction.
Investment service providers are securities investment firms and credit institutions authorized to provide investment services in Cameroon.
This authorization covers the provision of one or more of the services such as:
• Receiving and transmitting orders on behalf of third parties;
• Executing orders on behalf of third parties;
• Trading on own account;
• Portfolio management on behalf of third parties;
• Underwriting;
• Placement;
• Custody or admission of securities.
Authorization is granted by the Financial Markets Commission referred to in Article 14 of the law and referred to as the "Commission."
Types of Investment Service Providers in the Cameroon Financial Market
Understanding the types of providers and what they offer helps clarify who to approach in the finance market The various types of providers include:
Brokerages: These entities act as intermediaries in the execution of the purchase and sale of securities including stocks and bonds. Full-service firms provide bespoke financial advisory services, whilst discount brokerages concentrate on facilitating self-directed trading at reduced fees.
Asset/Wealth Managers: These providers construct and manage investment portfolios on behalf of clients in Cameroon.
Investment Banks: Financial powerhouses that facilitate mergers, acquisitions, and large-scale capital raising transactions in Cameroon.
Commercial Banks: Many traditional banks operate divisions that offer wealth management, mutual funds, and retirement planning in Cameroon.
Conditions for obtaining the authorization to operate as an Investment Service Provider in Cameroon
The conditions for obtaining the authorization are as follows:
• Have a registered office in Cameroon;
• Have a minimum capital determined by the Commission;
• Indicate the identity of its shareholders and directors, whether natural or legal persons, as well as the amount of their shareholding;
• Submit, for approval, the files of its principal directors and, at a minimum, of a certified public accountant;
• Adopt a corporate form suitable for the activity of providing investment services;
• Submit a business plan for each of the services offered;
• Adhere to the specifications drawn up by the Commission.
Credit institutions applying for authorization to provide investment services are subject to the conditions referred to above.
Securities investment firms have as their usual and principal business the provision of the investment services listed above. They may not, on a professional basis, engage in any activity other than those referred to in Article 5 of the law except under the conditions defined by the Commission.
It is prohibited for any person or firm other than an investment services provider to provide investment services and to use a name, corporate name, expressions, or to advertise in a manner that suggests they are authorized as a service provider.
Each investment service provider is required to join a professional association responsible for the collective representation and defense of the rights and interests of its members. The professional association is governed by statutes and internal regulations adopted by its general assembly and approved by the Commission.