Securities and investment services law in Cameroon governs the issuance, trading, and intermediation of financial instruments (stocks, bonds, derivatives) to ensure market integrity, transparency, and investor protection.
The regulatory framework for securities and investment services in Cameroon is primarily established by the 2016 Law on Collective Investment in Transferable Securities (UCITS) and the 1999 Law on the financial market, which together govern the issuance of securities, collective investment vehicles, and broker activities. Oversight responsibilities are shared between the Central African Financial Market Supervisory Commission (COSUMAF) and the Banking Commission of Central Africa (COBAC), both of which are focused on protecting investors and ensuring market transparency.
Key Aspects of Cameroon Financial Market Law
Regulatory Framework: The sector operates within the regulatory framework established by the Central African Economic and Monetary Community (CEMAC), designed to ensure financial stability, with COBAC responsible for the supervision of banking institutions.
Investment Protection: The 2002 Investment Charter guarantees equal treatment for both local and foreign investors, the protection of property rights, and the right to freely repatriate capital and profits derived from investments.
Collective Investment Law (2016): Investment funds and collective portfolio management in Cameroon are regulated by Law No. 2016/010 of 12 July 2016, which aims to strengthen security and confidence within the market.
Tax Incentives: Companies may benefit from tax incentives, including a two-year tax exemption available to newly established businesses. However, with effect from 2026, approved companies are subject to stringent reporting obligations, requiring the submission of annual activity reports by 31 March of each year, failing which monthly financial penalties shall be imposed.
Dispute Resolution: The applicable legal framework makes provision for the resolution of investment disputes and guarantees the right to fair and equitable treatment, in accordance with internationally recognized standards.
Securities under the Cameroon Financial Market
The securities in the Cameroonian financial market include:
• Shares and other securities conferring identical rights by category and giving or potentially giving access to the capital of a company or to the voting rights attached thereto, these securities being transferable by book entry or delivery;
• Bonds and other debt securities issued by the legal entity, transferable by book entry or delivery, excluding commercial paper and treasury bills;
• Shares or units of undertakings for collective investment in transferable securities.
Undertakings for Collective Investment in Transferable Securities
Undertakings for collective investment in transferable securities are, for the purposes of the law:
• Investment companies with variable or fixed capital;
• Mutual funds;
• Debt funds.
Investment Services under the Cameroon Financial Market
Investment services relate to the securities mentioned above and include:
• 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.