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CMA yet again feted ‘Most Innovative Capital Markets Regulator in Africa’

Nairobi, 20 September, 2017…The Capital Markets Authority (CMA) has been distinguished by yet another organisation as the ‘Most Innovative Capital Markets Regulator in Africa 2017’. The Award hosted by Africa Investor was conferred in New York, on Monday 18 September 2017 and seeks to profile African capital market success stories to the global investment community.

Eight capital markets regulators in Africa were nominated for the Award including South Africa, Mauritius, Nigeria, Namibia, Botswana, Uganda and Tanzania.

‘The Authority is delighted to receive the Africa Investor Award for a second time, following our previous recognition by them in 2015. This recognition is a validation of the significant collaborative effort that stakeholders in the industry have expended to promote the Kenya’s capital markets as a premier investment destination’, Capital Markets Authority Chief Executive Mr. Paul Muthaura said.

The CMA was recognized for milestones achieved in the implementation of the Capital Market Master Plan (CMMP), which seeks to position Kenya as the Heart of African Capital Markets and the gateway for regional and international fund flows. These innovations are central to the mobilisation of investor funds through the capital markets that are critical in facilitating infrastructure development and reducing pressure on traditional funding sources from government revenue.

The Award judges sought evidence of commitments to increasing transparency and efficiency, support for innovative technologies, employment of best regulatory practice, openness to foreign investors and efforts to create an enabling environment for the capital markets industry.

ENDS

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 more information, please contact: Antony Mwangi, Head of Corporate Communications on amwangi@cma.or.ke

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WORLD INVESTOR WEEK 2017

As a member of IOSCO,  CMA will be participating through several upcoming initiatives in collaboration with stakeholders in the World Investors Week to promote greater investor education and protection worldwide from October 2nd to 8th, 2017. 

The World Investor Week (WIW) is a global campaign to raise awareness about the importance of investor education and protection and highlight the various initiatives of securities regulators in these two critical areas. IOSCO members that participate in the campaign provide, in their own jurisdictions, a wide variety of activities such as launching of publications or services, promoting contests, organizing events such as workshops and conferences, and conducting local/national campaigns.

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CMA once again wins coveted Most Innovative Capital Markets Regulator Africa Award for 2017

Nairobi September 01, 2017….For the second year in a row the Capital Markets Authority (CMA) has been recognized as the Most Innovative Capital Markets Regulator Africa by the International Finance Magazine Awards 2017 (IFM Awards) in appreciation of initiatives to promote innovation and deepening of capital markets in Kenya.

The IFM Awards seek to honour individuals and organisations in the international finance industry that make a significant contribution to enhance innovation and drive performance.

Commenting on the recognition announcement, the CMA Chief Executive, Mr. Paul Muthaura said, ‘’The Authority, through the leadership of its Board, is committed to facilitating innovation in financial services through leveraging Kenya’s positioning in the region as an innovation centre. We continue to actively engage with and share experiences with peer regulators driving financial services innovation in markets as diverse as Australia and Abu Dhabi Global markets. These engagements have allowed us to develop a strategy framework for implementation of a regulatory sandbox to support fintech innovations in the capital markets.”

In parallel, in order to unlock the potential for local business to leverage the capital markets domestically, Mr. Muthaura noted that the CMA, in partnership with industry players, has been convening Business Incubator and Accelerator on the Listing Experience events which have provided an opportunity for 70 potential issuers to participate in structured engagements with the Transaction Advisors, the Nairobi Securities Exchange, Nominated Advisors, Lawyers, Auditors, Stockbrokers and Investment Banks, among other service providers including the CMA, to discuss their readiness for listing. This initiative is underpinned by the objective of the 10-year (2014-2023) Capital Market Master Plan of facilitating 3-4 new listings annually.

In its drive to fast-track the roll-out of new products and services in capital markets, CMA has also adopted a principle-based approval approach. As a result of this principle-based approval approach, CMA successfully issued two policy guidance notes (PGNs) to operationalize issuance frameworks for Asset-Backed Securities and Global Depositary Receipts and Notes. In the same year, the Authority also issued a PGN to facilitate the rollout of Exchange Traded Funds resulting in the first listing of such a product in Kenya.

In order to balance the Authority’s market regulation and market development mandates, within the same period, the Authority took significant strides in the implementation of the Code of Corporate Governance for Issuers of Securities to the Public (Corporate Governance Code) through the conduct of extensive stakeholder sensitization, the gazettement of a Stewardship Code and the introduction of a robust reporting template to ensure comparability of the quality of governance in different issuers as well as to inform the publication of corporate governance scorecards to empower investor decision making.

The recent gazettement of the Stewardship Code has placed Kenya at the forefront of global trend setters on corporate governance through equipping institutional investors to promote sustainable shareholder value and long term success in the companies in which they invest using the tools and practices established by the Stewardship Code.

In order to complement efforts to strengthen external oversight of sound practices in public issuers and licensed intermediaries, the Authority also launched over the period a web-based whistle blower portal to facilitate anonymous reporting of malpractices in the capital markets to complement its surveillance and investigations activities.

In line with the Government of Kenya’s aspiration to position Kenya as an Islamic Finance hub in the region and deepen the application of Islamic Finance within the economy, the Authority was honoured to host the joint financial sector regulators Project Management Office on Islamic Finance which drove a raft of targeted measures included in the Finance Act 2017 designed to support the growth of Islamic Finance in Kenya. The measures included; amendment to the Capital Markets Act to facilitate Shariah-complaint capital market products; amendment of the Income Tax Act to provide for equivalent tax treatment of Shariah-compliant products with conventional financial products; exemption from payment of Stamp Duty on transfer of title relating to Sukuk (the Shariah-compliant equivalent of conventional bonds) and to support Asset-Backed Securities transactions; and amendment to the Public Finance Management Act to allow for Government to raise capital through Sukuk.

With the view of walking the journey of market development with all investors and the general public in Kenya, the Authority was also pleased to champion robust investor education programs across all 47 counties in Kenya reaching approximately 20,000 people in 30 counties to date.

ENDS

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 more information, please contact: Antony Mwangi, Head of Corporate Communications on amwangi@cma.or.ke

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CMA Issues Policy Guidance Note to facilitate the issuance of Global Depositary Receipts and Notes

Nairobi 13 July, 2017…In order to deepen and develop the capital markets through innovative products, the Board of Capital Markets Authority (CMA) has approved a Policy Guidance Note (PGN) for the listing and trading of global depositary receipts and notes.

A global depositary receipt or note (GDR/N) is a negotiable certificate issued, listed and traded on a securities exchange. The GDR/N certificate represents securities issued in another country. Where the certificate represents ownership of bonds instead of shares, it is referred to as a global depositary note (GDN).

There are two types of GDRs and GDNs; sponsored GDRs/GDNs are depositary securities in which the issuer of the underlying security has direct involvement in the issuance of the depositary securities. An unsponsored depositary security is issued by a depositary bank without the involvement, participation or consent of the issuer of the underlying securities. Outbound depositary securities are GDRs/GDNs, whose underlying securities are primarily issued in Kenya and whose certificates are to be issued as depositary securities in another country. Inbound depositary receipts are GDR/GDN whose underlying securities are primarily issued in a foreign country and which are issued as depositary securities in Kenya. Where the objective of issuing a GDR/GDN is to raise capital domestically or internationally, then the issuer must be involved in structuring the depositary receipts/notes as it would effect the listing and prepare any potential prospectus.

The CMA Chief Executive, Mr. Paul Muthaura noted, ‘the approval of the PGN is instrumental in the implementation of the Authority’s Strategic Plan 2013-2017 which is now in its final year of implementation and the 10-year Capital Market Master Plan. The PGN underpins industry’s efforts to develop and deepen capital markets products and services and provide a facilitative environment for cross border investments”.

GDRs/GDNs are further expected to promote Kenya as an attractive investment destination by providing a means for international investors to familiarise themselves with local companies that may issue GDRs and GDNs in other markets and create opportunities for international entities to raise capital in Kenya. As a result of their inherent characteristic of representing securities issued in another country, GDRs/GDNs also eliminate the cost and complexity of establishing custody arrangements in multiple countries.

Mr. Muthaura added that in the case of GDNs, debt issued in foreign markets and depositary notes in Kenya would be denominated in the Kenya Shilling, thus eliminating currency risk for the investors. In the alternative, Kenyan companies could issue GDNs into foreign markets to tap liquidity and appetite in those markets while remaining denominated in Kenya Shillings, thereby providing an alternative to the currency risk of Eurobonds.

The depositary receipts listed and traded at the Nairobi Securities Exchange, will be admitted to the main investment market segment and the issuer or depositary bank where unsponsored, will be required to have proportionate securities held in trust in a custody account. Investors in sponsored depositary receipts have the right to vote in any shareholder meeting through the depositary bank.

PGNs are a key tool used by the Authority to facilitate a principle-based approval approach, which empowers the Authority to fast-track roll-out of new products and services in capital markets. This approach allows for the market to be more diverse in terms of the portfolio of investable products, by ensuring a more timely response to the changing capital market dynamics.

The principle-based approval approach is in line with the amendments to the Capital Markets Act, effected in December 2013 that enhanced CMA’s role in facilitating market development in relation to the introduction of new products.

ENDS

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 more information, please contact: Antony Mwangi, Head of Corporate Communications on amwangi@cma.or.ke

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STAKEHOLDER CONSULTATIVE PAPER ON POLICY FRAMEWORK

The Capital Markets Authority is mandated to promote the growth and development of Kenya’s capital markets, with the aim of positioning Nairobi as the preferred regional investment destination of choice through facilitative regulation and innovation. In this regard, the Authority is in the process of developing a framework to create a ‘safe space’ (or Regulatory Sandbox) in which businesses can test innovative Financial Technology (FinTech) products, services, business models and delivery mechanisms for the capital markets in a live environment, without immediately incurring all the normal regulatory consequences of engaging in the Fintech activity in question.

In view of the foregoing, the Authority has developed the First Consultative Paper that discusses the key ingredients of such a regulatory regime, to inform stakeholders on benefits, rationale, practices in other jurisdictions and a proposed framework for Regulatory Sandbox in Kenya.

The Authority has published the “STAKEHOLDERS’ CONSULTATIVE PAPER ON POLICY FRAMEWORK FOR IMPLEMENTATION OF REGULATORY SANDBOX TO SUPPORT FINANCIAL TECHNOLOGY (FINTECH) INNOVATION IN THE CAPITAL MARKETS IN KENYA”paper on its website.

The Authority therefore invites stakeholders and the general public to submit comments on the proposed policy framework. The proposed consultative paper can be accessed on www.cma.or.ke.

This Notice has been issued in accordance with section 12A of the Capital Markets Act to commence stakeholder and public consultation for the next thirty (30) days.

Kindly submit your comments by July 20, 2017 to:


The Chief Executive
Capital Markets Authority
Embankment Plaza, 3rd Floor,

Longonot Road, Upperhill
P.O. Box 74800-00200, Nairobi
Email:research@cma.or.ke

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CMA Issues Policy Guidance Note for Asset-Backed Securities

Nairobi May 11, 2017…In its drive to widen the scope of available capital markets products in the Kenyan market, in line with the 10-year Capital Market Master Plan, the Capital Markets Authority (CMA) has published a Policy Guidance Note (PGN) to facilitate the issuance of Asset-Backed Securities (ABS).

The PGN, which was approved by the CMA Board in April 2017, has undergone extensive stakeholder consultation and engagement to ensure that the final product has the input of industry stakeholders, including a 30-day public exposure period in August to September 2016.

The CMA Chief Executive, Mr. Paul Muthaura, disclosed that the principle-based approval approach, which underpins the PGN, empowers the Authority to fast-track roll-out of new products and services in capital markets. This approach ensures that the market is more diverse in terms of the portfolio of investable products, by ensuring a more timely response to the changing capital market dynamics.

The principle-based approval approach is in line with recent amendments to the Capital Markets Act, effected in December 2013 that enhanced CMA’s role in facilitating market development in relation to the introduction of new products.

The ABS Policy Guidance Note has been developed in line with the powers of the Authority under Sections 12A and 30Z of the Capital Markets Act. Section 12A empowers the Authority to issue guidelines to regulate capital market activities and products.  Section 30Z further empowers the Authority to issue guidelines in relation to the form or structure of a special purpose vehicle and documentation requirements for asset backed securities.

The PGN sets out guidance on how the Authority intends to interpret and apply the securitisation provisions of the Act and exercise its powers under the Capital Markets Act. The PGN also provides important clarifications of areas where the Act or its application were deemed to be unclear, following industry engagement. Mr Muthaura noted, ‘’This is expected to facilitate ABS transactions to be brought forward based on a clear regulatory regime on the legal structure of special purpose vehicles among other key refinements.’’

 

He explained that the PGN has addressed the conflicts that were identified between the Act and

the Capital Markets (Asset Backed Securities) Regulations, 2007, and confirmed that with the

benefit of the PGN the Authority had submitted proposals to the Cabinet Secretary for the repeal

of the 2007 regulations.

Mr Muthaura observed, ‘’Any further amendments to the Capital Markets Act as it applies to

Asset-Backed Securities will be developed once the market has been fully operationalized. The

issue of the PGNs on diverse products is expected to accelerate the increase of the scope of

available capital market products in Kenya’s capital markets, in close consultation with industry

stakeholders. The first product to be introduced through this approach were Exchange Traded

Funds in October 2015.’’

The publication by CMA paves the way for the rollout of ABS in Kenya, which is expected to support investment in capital intensive infrastructure assets as well as cater for the repackaging of future cashflows to raise capital. Mr. Muthaura reiterated that the Authority will be using the same approach of principle-based approval to catalyze the transformation of Kenya into a capital markets hub as envisaged in the 10-year Capital Market Master Plan. The PGN is available on the CMA website at www.cma.or.ke

ENDS

NOTES TO EDITORS:

Asset-Backed Securities

Asset-backed securities are securities backed by future cash flow generating assets such as road, water and other infrastructure levies, mortgage loans, credit card receivables, automobile loans and leases, education loan receivables, equipment loans and health care receivables, whose cash flows are used to repay both the principal and interest on the securities issued to purchase those assets. The securities are issued as part of a securitization process which is the process by which relatively illiquid assets with common features are packaged into interest bearing securities with marketable investment characteristics.

Some of the benefits of securitization include-

  1. For a seller of assets or originator it may be an alternative source of funding to borrowing, allow reduction of risk to a particular geographic area or maturity or type of lending, or reduce exposure to a particular borrower or trade creditor;
  2. For a non-seller, originator who originates assets directly into a special purpose vehicle (SPV) the objective is to earn fees from origination of assets into the SPV & earning fees as Servicer;
  3. Creates new long term asset products for investment for pension funds, insurance companies, collective investments that traditionally have long term liabilities to hedge;
  4. Mobilises capital for economic development;
  5. Spreads risk by allowing investors exposure to sectors they are not currently invested in or exposed to through a liquid instrument;
  6. Allows banks and other providers of short term risk capital to manage liquidity and interest rate risk;
  7. Reduces pressure on Central Banks to waive single risk or sector exposure limits by providing funding mechanism to repackage and divest from such a risk or sector;
  8. Provides an additional funding mechanism for various projects e.g. infrastructure and promote the provision of credit;
  9. Ensures far greater transparency for Central Banks, Insurance, Pension & other regulators & investors with regard to balance sheet risk and asset performance;
  10. Helps develop secondary markets for securities;
  11. Develops other service professions & diversifies the financial services sector in Kenya; and
  12. Allows new entrants into financial services sectors to fund via issuing ABS.

Background 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.

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Stewardship Code for Institutional Investors exposed

Nairobi, August 6, 2015…Capital Markets Authority has announced the commencement of a 30-day public exposure of a draft Stewardship Code for Institutional Investors. The Stewardship Code’s primary intent is to encourage deliberate and responsible management and oversight of assets by institutional investors through engagement with listed companies. The development of the Stewardship Code is part of the Authority’s ongoing reforms in corporate governance.

Institutional investors are pension funds, private pension scheme providers, insurance companies, takaful operators, investment trusts and collective investment schemes. There are two categories of institutional investors, firstly asset owners who collect and manage funds by way of investing in equities and other capital markets products on behalf of their beneficiaries or clients. Institutional investors are also asset managers who provide fund management and other investment services on behalf of their clients.

‘The development of a Stewardship Code for Institutional Investors is one of the critical pillars under the Corporate Governance Code for Public Listed Companies which is awaiting gazettement. The Stewardship Code will complement the various tools for enforcement and oversight of sound governance practices under the Corporate Governance Code. The roll out of yet another component of the corporate governance reform agenda will further reinforce the industry’s efforts of positioning the country as a premium investment destination’ said CMA acting Chief Executive, Mr. Paul Muthaura.

The Stewardship Code has been developed by a special committee appointed by the CMA Board known as the Capital Markets Stewardship Code Committee. The Committee’s eight members represent various institutional and capital markets players namely: National Treasury, Association of Retirement Benefit Schemes, Fund Managers Association, Listed Companies, Association of Kenya Insurers, Insurance Regulatory Authority, The Actuarial Society of Kenya and National Social Security Fund.

Mr. Muthaura noted that the Committee which was appointed in February 2015 has been facilitated by consultants from the World Bank Group. The Committee is expected to meet stakeholders during the exposure period so as to discuss the provisions in the draft Code and receive feedback for further refinement, before finalization for gazettement.

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FiRe Award 2015 kicks off

Nairobi July 07, 2015…..Preparations for the Excellence in Financial Reporting (FiRe) Award, have kicked off in earnest with corporates already putting in entries for the various award categories. The entries will close on July 20, 2015.
This year’s theme is “Championing financial reporting, corporate governance and social responsibility in East Africa’’. The FiRe Award which is in its 14th year, is an initiative of the Institute of Certified Public Accountants of Kenya (ICPAK), the Capital Markets Authority (Kenya) and the Nairobi Securities Exchange (NSE), in their joint commitment to promoting excellence in financial reporting, fostering sound corporate governance practices, and enhancing both corporate social responsibility and environmental reporting in East Africa.
This year, the Promoters of the Award are very pleased to confirm Guest of Honour at the Award Ceremony and Gala Dinner on Friday, October 23, 2015, will be His Excellency Erastus Mwencha, EGH, MBS, Deputy Chairperson, Commission of the African Union. The event will be held at Windsor Golf Hotel & Country Club, Nairobi. The Award Ceremony and Gala Dinner will be preceded by the second FiRe Award Conference on Thursday, October 22, 2015 at the Safari Park Hotel & Casino.
Since its launch in November 2002, the FiRe Award, which is the only Award of its kind in East and Central Africa, seeks to promote and institutionalize transparency, integrity, and accountability in the financial reporting process by complying with International Financial Reporting Standards (IFRS), the CMA Guidelines on corporate governance, and promoting disclosures on social and environmental initiatives by private, public and other entities based in East Africa.


“In 2002, ICPAK joined hands with the CMA and the NSE to launch the FiRe Award. The Awards were born of the realization that we needed to play a role in setting standards in financial reporting in Kenya. We urge organizations both in public and private sectors to embrace these coveted awards,” says Dr. Patrick Ngumi, ICPAK Chief Executive.
Dr. Ngumi added, “The Award seeks to promote and institutionalize transparency, integrity, and accountability in the financial reporting process by complying with International Financial Reporting Standards (IFRS), the CMA Guidelines on corporate governance, and promoting disclosures on social and environmental initiatives by private, public and other entities based in East Africa.”


CPA Bernard Ndung’u, Chairman of the Public Sector Accounting Standards Board (PSASB) and the Director General of Accounting Services at the National Treasury, who was present at the launch confirmed that the National Treasury is keen for State Owned Enterprises and other Government entities to participate. He confirmed, “The participation of the public sector in the Awards to recognize those institutions in the public sector which have embraced transparency, integrity and accountability; all with a view to improving service delivery to the Kenyan taxpayer.”


On his part, CMA Chief Executive opined, “One of the major benefits of participating in the FiRe Award, is that each institution that submits its financial accounts also receives from the FiRe Award evaluators, a confidential assessment of the highlights and shortcomings of their documentation. The feedback is intended to enable the institution to improve on its reporting and by extension its communication with stakeholders,” he further observes that, “By submitting financial statements for scrutiny by FiRe Awards, and a firm makes a statement that it has nothing to hide in its books.”


Mr. Muthaura’s view is supported by NSE Chief Executive Mr. Geoffrey Odundo who noted, “In order to attract increasing amounts of capital to our capital markets, we need to ensure that domestic and international investors are confidence in our investor protection standards. They also need assurance that our disclosure standards will ensure that companies listed on the stock exchange will provide sufficient information for them to make informed investment decisions.” Mr. Odundo further added, “As a Partner Exchange in the United Nations Sustainable Stock Exchanges Initiative, our participation in the FiRe Award is in line with our commitment to develop sustainable capital markets that will create long term value for all our stakeholders. We endeavor to challenge ourselves and others in the market to build a resilient, sustainable economy that optimizes the quality of life for all.”

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East African Securities Regulators Agree on Initiative to Enhance Regional Cooperation

Nairobi 9th July 2015: The regional capital markets regulators under the umbrella of East African Securities Regulatory Authorities (EASRA) deliberated on various initiatives to enhance regional integration with a view to promote the vibrancy of the capital markets. During the 42nd Consultative Committee meeting, held in Nairobi from 6th to 8th July 2015, the regulators deliberated on supervisory colleges, industry certification, risk based supervision, harmonization of continuous disclosure requirements, regional capacity building programmes and introduction of book building regulations in some member states.

On initiatives to put in place book building regulations it was agreed that an appropriate balance be considered to ensure that the process supports both transparent exits and public offers of securities in the capital markets. 
The Consultative Committee approved the fast – tracking of the adoption and implementation of risk based supervision among all regulators in the region. In order to ensure timely and efficient analysis of financial information, the regulators supported the adoption of systems for online submission of financial statements.

In order to enhance financial reporting and disclosure requirements across the region, the regulators will partner with other domestic stakeholders to continue promoting financial reporting awards and scale them up to the regional level. 
With a view to reducing regulatory arbitrage, and taking cognizance of the cross border operations of some licensees, the regulators agreed to work together and conduct joint inspections as well as fit and proper tests on regulated persons. 
The regulators agreed to the development of adequate plans for crisis management and putting in place proper crisis management framework for the capital markets supporting regional systemic stability.

The Consultative Committee approved the proposal for a capacity – building program for EASRA members and market intermediaries covering regulation, market supervision, and market development.

The Consultative Committee agreed that EASRA member states pursue national certification programs and the need to provide for a mutual recognition framework to facilitate licensed market participants to operate across the EAC capital markets.

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Kericho and Bomet Investor Education Initative

Nairobi June 26, 2015… As part of its efforts to enhance capital markets outreach within the counties, Capital Markets Authority (CMA) has organised a series of events in Kericho and Bomet Counties in partnership with the respective County Governments and the Kenya National Chamber of Commerce and Industry; Kericho and Bomet branches, which include road shows and stakeholder engagement sessions.

CMA has organised a road show targeting the general public in Bomet County and its environs on 29th June, 2015 and a forum for the Business and Professional Community and County Government officials on 3rd July, 2015. The County investor education initiative in Kericho will be kick-started with a road show on 30th June, 2015 followed by a forum for Women and Youth on 1st July, 2015. The series of events will conclude with a forum for the Business and Professional Community on 2nd July, 2015.

CMA acting Chief Executive, Mr Paul Muthaura, noted that the county outreach underpins the Authority’s commitment to enhancing financial education, in recognition of the important role it plays in mobilizing savings and investments. The Authority has had forums with youth, women and business communities in Mombasa, Kisumu, Meru, Embu, Nairobi and Murang’a Counties over the last 12 months.

Investor education is targeted at a wide spectrum of stakeholders including the business and professional community, women and youth as well as the general public. Financial literacy is a key priority of the Ten-Year Capital Markets Master Plan that supports the development and economic transformation of the country in line with the Vision 2030 goals.

ENDS

Notes to Editors:

Capital Markets Authority

The Capital Markets Authority 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 contact; Antony Mwangi, Head of Corporate Communications, on Email: amwangi@cma.or.ke

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