CMA licenses first online forex trading money manager
Nairobi, 18 December, 2018…The Capital Markets Authority (CMA) has announced the grant of Kenya’s first Money Manager license to Standard Investment Bank (SIB) Limited to operate in the online foreign exchange trading space. The license is granted in line with the Capital Markets Act, and the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017. Standard Investment Bank is also licensed by the CMA to operate as an Investment Bank.
‘As a money manager, Standard Investment Bank is licensed to choose and manage investments prudently for its online forex trading clients and develop appropriate investment strategy. SIB will also communicate clients’ buy and sell order positions through a licensed online forex trading broker, to meet clients’ investment goals. The money manager will conduct financial analysis and monitor foreign exchange portfolio investments on behalf of its clients’, CMA Chief Executive, Paul Muthaura said.
The new SIB authorisation is the first one under ‘money manager’ license category. EGM Securities Limited was licensed in February 2018 to operate under the ‘non-dealing online foreign exchange (forex) trading broker’ category. The total number of licensed intermediaries in Kenya’s online forex trading space is therefore, two.
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.