CMA signs the Enhanced Multilateral Memorandum of Understanding to enhance investor protection
Nairobi 14 May 2025… In line with its investor protection mandate, the Capital Markets Authority (CMA) Kenya has signed the Enhanced Multilateral Memorandum of Understanding (EMMoU). The EMMoU is set to enhance and advance mutual cooperation and the exchange of information among securities regulators across the globe with an objective to strengthen financial market integrity and investor protection.
The EMMOU was signed during the 50th Annual Meeting of the International Organisation of Securities Commissions (IOSCO) held 12-14 May in Doha, Qatar. CMA Kenya is a member of IOSCO. Kenya is the 28th country to sign the EMMoU among 130 jurisdictions, which are IOSCO members.
IOSCO is a standard setting body representing 95 percent of the world’s securities regulators. It is governed by a Board which comprises 35 securities regulators.
The EMMOU ensures investors are protected by ensuring markets are fair, efficient, and transparent. It is the global benchmark for international cooperation in the enforcement of securities laws and regulations, considering the evolution of technology. This has changed the landscape for enforcement and cooperation among securities regulators.
Speaking during the signing ceremony, the CMA Kenya Chief Executive Officer, Mr. Wyckliffe Shamiah, appreciated the IOSCO leadership for allowing CMA Kenya to sign the EMMOU. Mr. Shamiah noted this is aligned to the Authority’s ambition, as espoused in the 2023-2028 Strategic Plan, to build resilient markets, increase inclusivity and enhance investor confidence.
Mr. Shamiah observed; ‘’increased globalisation, interconnectedness of financial markets, and advancements in technology have changed the way the securities industry operates and how violations of securities laws occur. This has led to a changed approach in regulatory oversight, where enhanced and timely information sharing and cooperation, have become corner stones of effective investigation of breaches and enforcement actions’’.
The global financial crisis raised concerns around information sharing and cooperation between IOSCO members; keeping pace with technological and market developments; bolstering deterrence; and ensuring IOSCO continues to meet its objectives.
The EMMOU was developed to enable securities market regulators ensure continued effectiveness in safeguarding market integrity and stability, protecting investors and deterring misconduct and fraud.
The EMMoU is expected to foster greater cross-border enforcement cooperation and assistance among securities regulators, enabling them to respond to the risks and challenges posed by globalisation and advances in technology.
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BACKGROUND INFORMATION
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. CMA also regulates the structured commodity markets and online forex trading. 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 more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke
