EAC capital market regulators to issue common certificates
Posted Sunday, April 1 2012 at 18:34
Regional regulators are set to issue common certificates to operators in all five East Africa Community (EAC) member states, which will act as a benchmark for competence to participate in the capital markets.
The Kampala-based Securities Industry Training Institute (Siti) will award the certificates.
The institution has campuses in Kenya, Tanzania and Rwanda managed by the stock exchange of each country.
The four countries together with Burundi make up the East Africa Securities Exchange Association (EASRA).
Burundi, the latest EAC entrant, is at the initial stages of drafting legislation on the formation of a capital market and so far does not have a training institute. The institution has developed a training programme, which has been running in the EAC markets for the past two years.
However, professionals are trained at the institute on voluntary basis without formal assessment.
“For the training programme to be certified, Siti will now start examining candidates and award certificates for the various courses that it offers” said Mr Robert Mathu, the Capital Markets Authority Council chief executive who is also the EASRA chairman.
The aim is to provide a benchmark for experts in the region, which will include licensing and annual renewal, a decision that was made by the regional association mid this month.
“The EASRA consultative meeting unanimously approved the regional certification programme under the institute so as to make the programme attain its primary objective of developing professional regional market,” said the association in a statement.
The Nairobi Securities Exchange (NSE) runs six training sessions annually where participants are trained by peers on various modules under the regional programme.
The institution’s training covers investment, bond valuation, capital markets, corporate finance, asset management, entrepreneurship and corporate governance.
The industry seeks to replicate the legal profession where lawyers have to go through the Kenya School of Law before being allowed to practice in court, although they could still offer other legal services.
“We have been having discussions with the CMA on the certification programme and modules,” said NSE communications manager Caroline Karugu on the issue of anticipated costs.
It is expected that the programme would provide some benchmarks for professionals in the sector and boost service delivery in money markets.