To operate as a trustee in Uganda’s capital markets, a financial institution must obtain authorization from the Capital Markets Authority (CMA). The trustee licence allows banks, insurance companies, and other approved institutions to manage assets for collective investment schemes in compliance with the Collective Investment Schemes (Licensing) Regulations, 2003.
The CMA ensures that only financially sound and professionally qualified institutions handle investor funds through trusteeship, maintaining integrity and investor confidence in Uganda’s financial markets.
Step-by-Step Procedure
Step 1: Obtain and Complete the Application Form
Visit the Capital Markets Authority (CMA) head office at Uganda Business Facilitation Centre, Kololo, to collect the prescribed application form.
Alternatively, visit the CMA Uganda website to review the licensing guidelines before submission.
Only banks, insurance companies, or other approved financial institutions are eligible to apply for a trustee licence.
Step 2: Prepare and Attach Required Documents
The applicant must attach all relevant documents including:
- Certified Instrument of Incorporation
- Memorandum and Articles of Association
- Statement of assets and liabilities
- Audited financial statements for the last three years
- Certificate of no objection from the relevant regulatory authority
- Letter of consent and contact details of an auditor
- Details of the company’s directors, shareholding, and business address
- Statement of principal office and registered location in Uganda
Incomplete applications will not be processed.
Step 3: Submit the Application and Pay Fees
Submit the filled application and attachments to the CMA Licensing Board.
Pay the non-refundable application fee of UGX 500,000. Upon approval, the applicant must also pay an annual licence fee of UGX 2,500,000.
Attach receipts as proof of payment to complete the submission.
Step 4: Compliance Review and Investigation
Within 45 days, the CMA conducts a comprehensive investigation of the applicant’s financial background, management competence, and regulatory compliance.
If additional documents are required, the six-month review period starts from the date of submission of the new information.
Step 5: Approval and Licence Issuance
Once the application meets all requirements, the CMA Licensing Board approves and issues the Trustee Licence.
If rejected, the CMA will issue a written notice stating the reasons for refusal and any conditions to be met before reapplying.
The licence is subject to continuous supervision and compliance audits by the CMA to ensure adherence to capital market regulations.
Required Documents
- Instrument of Incorporation
- Memorandum and Articles of Association
- Audited financial statements for the past three years
- Statement of assets and liabilities
- Certificate of no objection from a regulatory body (Bank of Uganda or Insurance Regulatory Authority)
- Letter of consent from the company’s auditor
- Details of company directors and shareholders
- Proof of business registration and physical address
- Tax Identification Number (TIN)
- Proof of payment for licence and application fees
Office Locations & Contacts
Capital Markets Authority (CMA) Uganda – Head Office
Uganda Business Facilitation Center, 8th Floor, 1 Baskerville Avenue, Kololo
P.O. Box 24565, Kampala, Uganda
Tel: +256 414 342788 / +256 312 264950
Fax: +256 414 342803
Email: [email protected]
Website: cmauganda.co.ug
Eligibility
Only the following institutions are eligible for a trustee licence in Uganda:
- Banks licensed under the Financial Institutions Act
- Insurance companies licensed under the Insurance Statute 1996
- Other financial institutions approved by the Capital Markets Authority
No individual or unregistered company may act as a trustee in Uganda’s capital markets.
Fees
| Type of Fee | Amount (UGX) |
|---|---|
| Application Fee | 500,000 |
| Annual Licence Fee | 2,500,000 |
Both fees are payable to the Capital Markets Authority at the time of application and licence renewal.
Validity
The Trustee Licence is valid for one (1) year from the date of issue and must be renewed annually.
Processing Time
Processing and review take approximately 45 days, depending on the completeness of the application and verification results.
Important Instructions
- Only qualified financial institutions may apply for a trustee licence.
- All documents must be certified and submitted in full to avoid rejection.
- The CMA may conduct site inspections and background checks on directors and shareholders.
- Trustees must comply with all provisions under the Collective Investment Schemes Act and related regulations.
- Failure to meet regulatory conditions may lead to suspension or cancellation of the licence.
Need for the Document
A trustee licence is required to legally manage and safeguard assets in collective investment schemes.
Trustees hold property on behalf of investors, ensuring transparency, accountability, and compliance with capital market laws.
This licence guarantees the integrity of Uganda’s financial system and protects investors’ interests.
Information Which Might Help
A trustee is defined under Ugandan law as a person or entity holding title to the property of a unit trust scheme on behalf of participants.
Foreign companies seeking trustee licences must register locally and obtain a certificate of establishment before applying.
The CMA provides continuous supervision of licensed trustees to prevent fraud and mismanagement of investor funds.
Key Takeaway
Obtaining a Capital Markets Authority Trustee Licence in Uganda is mandatory for any financial institution wishing to operate as a trustee for investment funds. The process ensures that only competent, well-capitalized, and regulated entities manage public investments in compliance with Uganda’s financial laws.
