The framework will include financial resources rules, conduct of business and governance rules, formulation of a standardised risk based capital adequacy reporting mechanism and harmonisation of paid up share capital for various licence categories across the region.
Additionally, the regulators will work to harmonise their market infrastructure systems in preparation for the adoption of RBS regionally.
In a statement issued at the end of the 38th EASRA consultative meeting held in Nairobi, EASRA Chairman Japheth Katto said that the adoption of RBS across the region would aid in early identification of emerging risks and provision of a consistent framework for risk evaluation to develop sound regional capital markets.
Katto, who is also the CEO of Uganda’s Capital Markets Authority, chaired the meeting which was attended by Paul Muthaura Acting Chief Executive Capital Markets Authority, Kenya, Robert Mathu, Executive Director of the Capital Markets Authority, Rwanda and Melchior Wagara, First Deputy Governor, Bank of Burundi.
EASRA members noted the progress by Burundi in establishing a capital market and committed to offer technical assistance in support of the effort.
Burundi joined EASRA in 2011 with a focus on leveraging existing expertise to fast-track the establishment of its domestic capital markets.
As part of branding efforts aimed at giving the regional body more visibility, EASRA adopted a new look logo and corporate manual, to be officially launched in the last quarter of 2013.