Discount Securities Limited (DSL) Compensation
The Authority competitively procured services of a bank to serve investors seeking compensation thereby allowing for a nationwide network for the processing of compensation claims and the payment of compensation. These services were procured pursuant to the Quotation No. CMA/95/2010-2011 by the CMA to facilitate payments to DSL clients; which tender was competitively awarded to The Co-operative Bank of Kenya Limited. The purpose of this arrangement is save customers the inconvenience and costs of travelling to DSL offices in Nairobi for purposes of obtaining their monies.
While confirming the new development, the CMA Chief Executive, Mrs. Stella Kilonzo said this compensation process will be undertaken in phases with the objective of settling the majority of claims as soon as possible.
‘’In the first phase of the compensation exercise set to start on February 8, 2012 investors will be paid a maximum compensation amount of Kshs10, 000 with the balance payable in the second phase of the compensation process’’.
The CMA Chief Executive explained that under the Service Agreement, The Co-operative Bank of Kenya Limited will be the central coordinator for investor compensation services including free opening and maintenance of bank accounts for purposes of customer identification and verification; processing and facilitating the transfer of funds, receiving claim forms from the clients and forwarding the claim forms to CMA for processing and approval for payment.
To be able to open bank accounts the claimants are advised to carry with them the necessary identification documents including original IDs/Passport and Certificate of Incorporation (for companies). Joint account holders and companies should have the identification documents used during the opening of CDS accounts.
Claimants are expected to lodge their claims by completing claim forms which shall be provided together with the account opening forms and for this purpose clients’ are expected to have their CDS account numbers or the DSL account statements and original identification documents. This is to be able to provide evidence of claim against DSL.
The Co-operative Bank of Kenya Limited has a countrywide branch network hence clients will be in a position to access their funds at the branch nearest to them. The compensation process is expected to run for the next six months with effect from February 8, 2012 up to August 2012 and all genuine claimants are expected to have presented their claims within the set period.
This compensation should inject optimism and enhance investor confidence in our capital markets.
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.
The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest.
For further information, please contact:
Head of Corporate Communications
Capital Markets Authority