PROPOSAL TO GAZETTE -

1. GUIDELINES ON PROCEEDS OF CRIME AND ANTI MONEY LAUNDERING;
   AND
2. AMENDMENTS TO THE CAPITAL MARKETS (PUBLIC OFFERS, LISTINGAND DISCLOSURES) REGULATIONS, 2002 TO CATER FOR BOOK BUILDING.

The Capital Markets Authority (CMA) has issued a statement inregards to the penalties imposed on stockbrokers and other licenses persons for non compliance with the Capital Markets Act and Regulations. The statement is intended to educate as well as create public awareness on compliance matters and actions taken by the Authority.

Under Section 11(3) (cc) of the Capital Markets Act, the Authority is empowered to impose sanctions for the breach of the provisions of the regulations as well as for non‐compliance with the Authority’s requirements or directions. Examples of such sanctions may include and are not limited to levying of financial penalties proportional to the gravity or severity of the breach.

Section 25A of the Act gives the Authority power to impose financial penalties subject to the maximum limits of Kshs. 5 Million for individuals and Kshs. 10 Million for corporate entities as prescribed under Section 34(A)(1) of the Capital Markets Act.

Section 12 (2) of the Act provides that all rules, regulations and guidelines formulated by the Authority should be exposed for comments by stakeholders and general public for 30 days. The Authority complied with this obligation by exposing Section 11(3) (cc),

Section 25 (A) and Section 34 (A) of the Act, for the required period prior to their coming into force. More specifically, the Minister approved and prescribed the imposition of financial penalties to a maximum of Kshs. 5 Million for individuals and Kshs. 10 Million for corporate entities.

The Enforcement Manual is an internal guide and is based on Sections 25 and 34A of the Capital Markets Act which were duly exposed and approved and is not subject to Section 12(2) of the Act. It is an internal guideline that the Authority uses to guide the consistent levying of financial penalties and other sanctions in accordance with the limits prescribed by law. The Manual was circulated to raise awareness in the industry of the sanctions that the Authority may impose under section 25A and Section 34A of the Capital Markets Act.

The  Capital  Markets  Authority  (CMA)  has  approved  the application  for  consent  to  register  a  Diaspora  Unit  Trust  Funds  Scheme  by  InvesteQ  Capital  Limited.
According to the Authority’s Chief Executive, Mrs. Stella Kilonzo, the unit trust fund, is welcome as it targets Kenyans in the Diaspora, and  it will operate pursuant to the procedures prescribed in the  Capital Markets Act and Capital Market (Collective Investment Scheme) Regulations, 2001. 

Financial Regulators to work toward Vision 2030 objective of creating an International Financial Hub
Domestic Financial Sector Regulators have agreed to work jointly to ensure the realization of the objectives of the Vision 2030 as relates to the Economic Pillar of the Vision and its desire to create an international financial hub. This agreement was reached during the 3rd Joint Retreat of the Board of Directors of the four financial sector
Regulators in the country. The meeting held on the 25th - 26th March 2010 in Mombasa was organized by the Insurance Regulatory Authority and was attended by Board members from the Capital Markets Authority, Central Bank of Kenya, Insurance Regulatory Authority and the Retirement Benefits Authority.