The regulation provides categories of investors as local and foreign investors. A local investor, if an individual, is a natural person who is a citizen of an East African Community Partner State while, if a body corporate, is a company or anybody corporate established or incorporated under the Companies Act of under the provisions of […]
Securities lending and borrowing The regulation covers transactions involving the lending and borrowing of securities. These transactions must be conducted according to the regulations, and where there is a need for an exemption for a sell buy-back or a transaction similar to securities lending, the exemption must be sort from the authority. The parties intending […]
A person that intends to operate under the venture capital sphere is generally registered under the Companies Act. However, that does not designate it as a “registered venture capital company” because it only takes effect upon registering it as a “venture capital company” by the CMA. An entity intending to operate as a venture capital […]
The regulation covers entities that intend to operate an online trading platform as dealing or non-dealing broker and money managers. An entity interested in operating in the mentioned fields will make an application subject to the regulatory requirements and where necessary, the regulator may request additional documents. The regulator will not refuse to issue a […]
The regulations address the types and regulatory requirements to register and operate a Collective Investment Scheme (CIS) in Kenya. To register a CIS, the promoters must secure consent from the CMA before formal registration. If the application is successful, the registration is required to take place within three months as the consent lapses at the […]
The regulations provide for the bare minimum requirements for the operations and organizational requirements of the market intermediaries. Compliance with these regulations eases the relationship between the market intermediary and the regulator (CMA), not to mention avoiding unnecessary notices that may put the market intermediary in the bad spotlight; hence, affecting its current clientele portfolio. […]
The regulations make it an obligation for market intermediaries to factor principles of best practice when proffering their services or engaging in practices pertaining to market intermediaries. There is more emphasis on observing a high standard of integrity and fair dealing, acting with due skill, care, and diligence, and observing high standards of market conduct. […]
The take-overs and mergers are controlled by various government agencies, including the CMA. Other noticeable include the Competition Authority of Kenya for general take-over and merger while other sector-specific regulatory bodies weigh in on similar transactions. Therefore, it is essential to map out all applicable government agencies that may require compliance prior to engaging in […]
In the derivative financial markets, one will encounter various contracts such as the forwards, futures, options, and swaps traded through platforms like securities exchange licensed to trade derivative contracts. CMA is required to be provided with these contracts for approval purposes. Anyone interested in establishing a derivative exchange must ensure that a license is obtained […]
The regulation reflects its name whereby it provides the various licensing requirements that a person ought to comply with for purposes of securing a license from it and its operation to be considered in compliance with the CMA’s conditions. The regulations address licensing requirements for securities exchange; stockbrokers and dealers; investment advisers and fund managers; […]