LICENCING OVERVIEW
Overview of licensing and Approvals Roles
The Authority is mandated to issue licenses to intermediaries, consider various applications by issuers of securities, approve registration of Collective Investment Schemes, corporate actions and restructurings and other products offered in the capital markets.
License Applications
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Section 23(1) of the Capital Markets Act requires all persons intending to carry on the business of a stockbroker, dealer, investment bank, fund manager, investment adviser, and authorized depository to hold a valid license issued by the Authority.
In addition, Section 23(2) of the Capital Markets Act requires all persons intending to carry on the business of a securities exchange, registered venture capital company, collective investment scheme, central depository or credit rating agency to be approved by the Authority.
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Applications should be submitted to the Authority via the Authority’s Online Applications Portal or by way of a hard copy submission.
The Application Form which is contained within this section of the website is to be submitted to the Authority in support of a License Application. Kindly note that the application fee of Kshs 2500 should be submitted to the Authority by way of a company cheque.
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It is important for applicants to note that submission of an online application does not imply that the applicant has met all the minimum requirements.
Upon submission of the application, the Authority will review the same and revert to applicants regarding any areas of noncompliance with the license requirements which the applicant is required to address. In addition, the Authority conducts a premise inspection to ensure that the applicant has adequate technical and administrative capacity to carry out the business for which the license is sought.
In the review of license applications the Authority conducts due diligence to ensure that the directors and key personnel of a prospective licensee are fit and proper to hold their respective positions. For more information on the due diligence documentation required by the Authority in this regard, please see below.
The application is considered by the Board of the Authority for a final determination of the application.
In the review process the Authority always reserves the right to request for any additional information that may be required to adequately evaluate the application. The Authority may also convene meetings with the applicant’s technical team to facilitate progression of the application if need be.
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The Authority shall close any applications that remain outstanding for a period of six (6) months from the date of submission of the application to the Authority.
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Upon approval of the application the applicant is advised accordingly and required to settle the requisite license approval fee.
In addition, the Authority will advise the applicant when the License Certificate is available for collection.
Approvals Applications
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The capital markets legal and regulatory framework contains approvals requirements for the various categories of approvals sought by an applicant.
Submission of Applications
Applications should be submitted to the Authority via the Authority’s Online Applications Portal or by hard copy submission to the Authority’s office.
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The Authority reviews applications and will revert to applicants regarding any areas of noncompliance with the minimum requirements which the applicant is required to address.
The Authority conducts an internal review of the application and conducts a premise inspection with regard to applications for consent to register a Collective Investment Scheme in order to ensure that the applicant has adequate technical and administrative capacity to carry out the business for which the approval is sought. In addition, the Authority conducts due diligence checks to ascertain the fitness and probity of the director and key personnel of a promoter of a Collective Investment Scheme.
In the review process the Authority always reserves the right to request for any additional information that may be required to adequately evaluate the application. The Authority may also convene meetings with the applicant’s technical team to facilitate progression of the application if need be.
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Upon approval of the application by the applicant is advised accordingly and required to settle the requisite approval fee (if applicable).
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The Authority is required to ensure that every person who is, or is to be, a director, chief executive, manager and key personnel of a licensee is fit and proper to hold the particular position that he holds or is to hold.
In determining the fitness and probity of the directors, chief executive, managers and key personnel of a proposed licensee the Authority requires applicants to submit the following documentation:
- A certified copy of the appointees national identity card/passport
- Comprehensive CV of the directors or key personnel ( as defined under Regulation 53(2) of the Capital Markets (License Requirements)(General) Regulations, 2002;
- Certified copies of their Police Clearance Certificates from the Criminal Investigations Department (or its equivalent in other jurisdictions); and
- The Duly completed Fit and Proper form. (This can be downloaded within this section of the website.)
