The Capital Markets Authority (CMA) has announced the issuance of licenses to four companies under the Capital Markets (Licensing Requirements) (General) Regulations 2002 and one under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
‘The issuance of licenses enhances our mandate of ensuring the proper conduct of all licensed persons and market institutions and in turn, facilitates investor protection’, noted CMA Chief Executive Wyckliffe Shamiah.
Vedman Capital Limited has been licensed as an investment adviser. The firm will primarily advise clients about investments in the capital markets and, where an agreement exists with a client, manage a portfolio of investments for the purpose of investment. Additionally, the Authority noted the grant of a stockbrokerage license to SPK Investment Services Limited to conduct the business of buying or selling of securities as an agent for investors.
Pergamon Financial Services Limited has been licensed as an Investment Bank. An investment bank is a non-deposit-taking institution whose primary role is to advise on offers of securities to the public or a section of the public, such as Initial Public Offers (IPOs). They also advise on takeovers, mergers, acquisitions, corporate restructuring of listed companies, privatization and underwriting of securities issued or to be issued to the public.
Diamond Trust Bank has been licensed as an authorised depository. An authorised depository also referred to as a custodian, is a bank licensed under the Banking Act or a financial institution approved by the Authority to hold in custody, for safekeeping, funds, securities, financial instruments, or documents of title to assets registered in the name of local investors or an investment portfolio.
Furthermore, the Authority has also licensed Admirals Kenya Limited as a non-dealing online forex trading broker under the CMA (Online Foreign Exchange Trading) Regulations, 2017. Admirals Kenya Limited will act as a link between the foreign exchange market and a client in return for a commission in spreads but will not engage in market-making activities.
Employees of the new licensees with direct dealings with clients will be required to undertake the Securities Industry Certification Programme (SICP) within one year from the licensing date. The licences will remain in force unless otherwise suspended or revoked following the necessary due process.
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