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Fiji’s Capital Markets Development Authority (CMDA) has been dissolved through the Capital Markets Decree 2009 approved by Cabinet last week.
The decree repeals the Capital Markets Development Authority (CMDA) Act of 1996 and dissolves the CMDA, a Cabinet statement said.
“It transfers all administration to the Reserve Bank of Fiji (RBF), transfers the CMDA functions and responsibilities to be determined by the RBF and ceases the Capital Markets Authority Board operations and powers and transfers it to the Reserve Bank’s Board,” the statement said.
Prime Minister and Minister for Finance, Commodore Voreqe Bainimarama, said the Ministry of Finance had issued a directive effective August 13, 2009, that the administration of the CMDA be transferred to the RBF.
“It was hoped that the capital markets would grow sufficiently so that the industry would be able to support the bulk of the operating costs of the CMDA,” said Bainimarama.
“However, this has not happened and the cost of operations kept on escalating, and was difficult to sustain.”
He said the transfer of CMDA operations to RBF will consolidate the supervision and regulation of the financial system of Fiji and bring about greater efficiency and effectiveness in the operations of the CMDA.
RBF Governor Sada Reddy assured the business sector recently that there was no conflict of interest in the RBF handling the CMDA’s functions while at the same time being the regulatory authority.
The CMDA was established in 1996.
Former chief executive officer Mereia Volavola’s contract was terminated the day the shift to the RBF was announced.
Government has assured that all CMDA employees will now be employed by the RBF.
