Regulator rolls out next phase of mandatory tests for NSE brokers
Capital Markets Authority acting chief executive Paul Muthaura. The staff certification cuts across intermediaries such as stockbrokers, investment banks, fund managers and investment advisers. PHOTO | FILE
What you need to know:
Introduction of the internationally recognised certification programme is key for the market which is integrating new products such as derivatives and real estate investment trusts (Reits).
The certification programme is being offered by the UK-based Chartered Institute of Securities and Investments (CISI) in two stages.
The staff certification cuts across intermediaries such as stockbrokers, investment banks, fund managers and investment advisers.
The Capital Markets Authority (CMA) is set to complete rollout of the compulsory securities industry certification programme for stockbroker staff by the end of June this year.
The certification programme is being offered by the UK-based Chartered Institute of Securities and Investments (CISI) in two stages.
The initial certification stage, known as the International Introduction to Securities and Investment Kenya (IISI- K), was rolled out last year with the first lot of trainees taking their examinations in November.
“The curriculum for stage one, IISI (Kenya), has already been developed. The first cohort of market candidates went through training and sat for the examination in November 2015, including 13 CMA staff members and eight officials from various training institutions in Kenya,” said CMA acting chief executive officer Paul Muthaura.
“The curriculum for stage two which will cover local conduct of business standards and market regulations, under the Kenyan regulatory framework, will be completed by June 2016.”
CMA signed the memorandum of understanding with CISI in September 2014 to offer the training, which is targeting staff members of capital markets licensees who work in customer and operation departments.
The staff certification cuts across intermediaries such as stockbrokers, investment banks, fund managers and investment advisers.
The introduction of the internationally recognised certification programme is key for the market which is integrating new products such as derivatives and real estate investment trusts (Reits), which attract international investors who would demand similar standards to those they get in their home markets.
CISI, which was formed in 1992 by London Stock Exchange practitioners, currently has more than 40,000 members in 110 countries. It offers courses in capital markets operations, wealth management, risk and compliance.
Mr Muthaura has warned that failure by core staff of stockbrokers with less than 10-years’ experience to secure certification by the end of this year will risk having the broker denied a licence by the regulator.
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