Capital Markets

Over 1,000 brokers certified in two years

brokers

CMA chief executive Paul Muthaura. file photo | nmg

The number of certified stockbrokerage staff has risen to over 1,000 in the last two years following the introduction of a securities and investment certification programme by the Capital Markets Authority (CMA).

The certified people working in the capital markets shot up from 35 in 2015 to 1,241 in 2017.

Kenya’s certification programme introduced in 2015 cut across intermediaries such as stockbrokers, investment banks, fund managers and investment advisers.

The CMA partnered with the UK-based Chartered Institute of Securities and Investments (CISI) to offer the certification examinations, initially mandatory for new licensees and later for all operators.

The CMA chief executive Paul Muthaura Thursday said the certification has raised the level of confidence among investors.

“This deepening of capacity is central to ensuring our intermediaries are appropriately equipped to structure and advise on an ever-broadening scope of locally available securities instruments such as asset-backed securities, global depositary receipts and notes and derivatives among others,” said Mr Muthaura.

READ: CMA set to certify stockbrokerage staff

“We have grown from only 35 candidates that had sat for the exam in Kenya in 2015 to 559 in 2016 and 1,241 as of December 31, 2017,” he added.

Outside the UK, in 2017 Kenya was sixth in the CISI’s top exam-taking countries after United Arab Emirates (UAE), India, Cyprus, Spain and South Africa.

Mr Muthaura said Kenya has one of the highest pass rates at 75 per cent against a global average of 58 per cent.

The regulations and market practice paper have raised the bar on expectations and has seen 55 per cent pass rate.

CISI was formed in 1992 by London Stock Exchange practitioners and currently has more than 40,000 members in 110 countries. It offers courses in capital markets operations, wealth management, risk and compliance.