Bank of Mozambique sets investor classification rules for securities markets and new connection regime for the national single payments network

The Bank of Mozambique issued two regulatory notices. One sets the rules for connecting to the national single payments network, Rede Única Nacional, and revokes Notice No. 2/GBM/2015. The other establishes a new framework for qualifying investors in the securities market and sets conduct, disclosure and categorization duties for financial intermediaries authorized by the Bank of Mozambique. Under the securities market notice, investors must be classified as professional or non-professional. Non-professional investors face limits on higher-risk activity, including a cap of 10 percent of annual net income or net financial assets for complex or high-risk products and a yearly cap of MZN 2 million for public offers, securities crowdfunding or similar instruments, while shares, bonds and fund units remain uncapped subject to risk and suitability rules. A non-professional investor may request professional status, but the intermediary must assess knowledge, experience and financial capacity and verify at least two criteria, including trading activity, a portfolio of at least MZN 30 million, or at least one year of relevant financial sector experience. The notice also requires written categorization policies, written disclosures, suitability checks for non-professional investors, periodic reporting, segregation of client assets, recordkeeping, conflict management, staff training, financial education programmes and formal complaint procedures. The investor-classification notice enters into force 90 days after publication. The Bank of Mozambique will issue circulars on standardized disclosure templates and the information to be included in training plans and reports.