Market players face mandatory tests under a proposed law

Securities and investments analysts will undergo mandatory exams and registration by a new professional body under a proposed law.

The Securities and Investment Analysts Bill, 2014 now before the House, establishes the Institute of Certified Securities and Investment Analysts to strengthen the capital markets.

“The institute shall design and administer an initial ethics test for the purposes of determining the professional suitability of all its members and to subsequently design and undertake such continuous development programmes for its members,” reads the Bill sponsored by the chairman of Finance, Planning and Trade committee Benjamin Lang’at.

The proposed law establishes an examinations board to test and register certified securities and investment analysts. It has also introduced penalties and jail terms for non-compliance.

Other functions of the institute are advising the Treasury secretary on matters relating to securities and investments.

The Capital Markets Authority recently partnered with UK-based Chartered Institute of Securities and Investments for similar certification but it was not immediately clear if this would conflict with the new statutory examiner.