CMA issues four licenses to financial intermediariesTuesday December 20 2022
The Capital Markets Authority (CMA) has issued four licenses to banks and financial intermediaries as investment advisers, authorised depositories and forex trading brokers as it aims to create a secure investment environment and reinforce transparency in all listed companies.
The markets regulator said it had licensed Vedman Capital Limited, Pergoman Financial Services Limited, Diamond Trust Bank, and Admirals Kenya Limited under the Capital Markets (Licensing Requirements) (General) Regulations 2002 and one under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
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“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 Wyckliffe Shamiah, CMA Chief Executive.
Vedman Capital Limited has been licensed as an investment adviser, to primarily advise clients about investments in the capital markets and where an agreement exists with a client, while Pergamon Financial Services has been licensed as an Investor Bank.
Diamond Trust Bank has been licensed as an authorised depository, also referred to as a custodian, for safekeeping, funds, securities, financial instruments, or documents of title to assets registered in the name of local investors or an investment portfolio.
Similarly, Admirals Kenya Limited has been licensed as a non-dealing online forex trading broker under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
It 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 date of licensing.
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The licenses will remain in force unless otherwise suspended or revoked following the necessary due process.