The Capital Markets Authority (CMA) has ordered all financial and investment analysts in Kenya to seek practising licences from a newly established regulatory body in a bid to weed out quacks and rein in rogue dealers.
CMA has partnered with the Institute of Certified Investment and Financial Analysts (Icifa) in a bid to help protect investors’ wealth and grow expertise in fields related to markets analysts.
The regulators’ warning shot comes as only one out of five financial and investment analysts in Kenya had applied and received a licence to ply the trade as at June 7, 2017 deadline. “CMA and Icifa are cognisant of the importance of integrity, accountability, and professionalism in the development of disciplined financial markets,” the two regulators said in a joint communique.
Those found guilty of serving as financial analysts without a licence face a Sh500,000 fine and two-year jail term for first-time offenders, while repeat offenders will be hit with a Sh1 million fine and a public reprimand in the Kenya Gazette and newspapers, the regulator warned.
The requirement to hold licence has been broadened to now include audit and law firms which undertake advisory deals.
However, government employees engaged in investment and financial analysts such as those at the Treasury and Central Bank of Kenya are exempted from seeking a practicing certificate.