CMA approves license for first authorized securities dealer
Nairobi, June 30, 2015…Capital Markets Authority (CMA) has announced the approval of Chase Bank of Kenya Limited as the first authorized securities dealer in Kenya under the Capital Markets Act and Regulations. The approval will enable the applicant to carry on the business of buying, selling, dealing, trading, underwriting or retailing of fixed income securities.
According to the Capital Markets Act, an authorized securities dealer is a person authorized to deal in securities and operate in a specified market segment as may be prescribed by the Authority.
Commenting on the development, the Authority noted that it had reviewed the Bank’s application and was satisfied that it had met the requirements of Section 29 of the Capital Markets Act and Regulation 45 of the Capital Markets (Licensing Requirements) (General) (Amendment) Regulations, 2002.
The license will remain in force unless otherwise suspended or revoked following the necessary due process.
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.