ADVOKS GLOBAL · KENYA
Capital Markets Act
24A. Criteria for suitability
Edition: 2025-12-11 · In force
24A. Criteria for suitability
(1)The Authority shall, in determining if a person is suitable for the grant of a licence under this Act, consider the—(a)financial status or solvency of the person;(b)educational or other qualifications or experience of the person, having regard to the nature of the functions which, if the application is granted, the person shall perform;(c)status of any other licence or approval granted to the person by any financial sector regulator;(d)ability of the person to carry on the regulated activity competently, honestly and fairly; and(e)reputation, character, financial integrity and reliability—(i)in the case of a natural person, of that individual; or(ii)in the case of a company, of the company chairperson, directors, chief executive, management and all other personnel including all duly appointed agents, and any substantial shareholder of the company.(2)Without prejudice to the generality of subsection (1) the Authority may, in considering whether a person is fit and proper—(a)take into account whether the person—(i)has contravened the provision of any law, in Kenya or elsewhere, designed for the protection of members of the public against financial loss due to dishonesty, incompetence, or malpractice by persons engaged in transacting with marketable securities;(ii)was a director of a licensed person who has been liquidated or is under liquidation or statutory management;(iii)has taken part in any business practice which, in the opinion of the Authority, was fraudulent prejudicial to the market or public interest, or was otherwise improper, which would otherwise discredit the person's methods of conducting business; or(iv)has taken part or has been associated with any business practice which casts doubt on the competence or soundness of judgment of that person; or(v)has acted in such a manner as to cast doubt on the person's competence and soundness of judgment;(b)take into account any information in the possession of the Authority, whether provided by the applicant or not, relating to—(i)any person who is to be employed by, associated with, or who shall be acting for or on behalf of, the applicant for the purposes of a regulated activity, including an agent;(ii)where the applicant is a company in a group of companies—(A)any other company in the same group of companies; or(B)any substantial shareholder or key personnel of the company or any company referred to in subparagraph (a);(c)take into account whether the applicant has established effective internal control procedures and risk management systems to ensure its compliance with all applicable regulatory requirements; and(d)have regard to the state of affairs of any other business which the person carries on or purports to carry on.(3)The Authority shall give a person an opportunity to be heard before determining whether the person is fit and proper for the purposes of this Act.(4)For the purposes of this section, "group of companies" means any two or more companies one of which is the holding company of the others.