ADVOKS GLOBAL · KENYA
Investment and Financial Analysts Act
26. Professional misconduct
Edition: 2022-12-31 · In force
26. Professional misconduct
(1)A member of the Institute shall be guilty of professional misconduct if such member—(a)allows any person to practise in his name as a investment and financial analyst, unless such person is the holder of a practising certificate and is in partnership with or employed by him;(b)enters, for the purpose of or in the course of practising as an investment or financial analyst, into partnership with a person who does not hold a practising certificate, or secures any professional business through the services of such a person or by means not open to an investment analyst;(c)pays or allows or agrees to pay, directly or indirectly, to any person (other than a person who holds a practising certificate, is a retired partner or the legal representative of such a partner), any share, commission or brokerage out of the fees for, or profits of his professional services;(d)accepts or agrees to accept any part of the fees of, or profits for, the professional work of an advocate, auctioneer, broker or other agent who is not the holder of a practising certificate;(e)solicits clients or professional work or advertises professional attainments or services by use of means which contravene the guidelines published by the Council;(f)discloses information acquired in the course of professional engagement to any person other than a client, without the consent of the client, or otherwise than required by law;(g)certifies or submits in his name or in the name of his firm a report of investment advice, where the examination of such statements and the related records have not been made by him or a partner or an employee in his firm;(h)fails to observe and apply professional, technical, ethical or other standards prescribed by the Council as guidelines for practice by members of the Institute;(i)permits his name or the name of his firm to be used in connection with an estimate of earnings contingent upon future transactions in a manner which may lead to the belief that he vouches for the accuracy of the forecasts;(j)expresses his opinion on investment statements of any business or any enterprise in which he, his immediate family, his firm or any partner in his firm, has an interest, unless he discloses that interest when expressing the opinion;(k)charges, in respect of any professional employment other than insolvency or receivership, fees which are based on a percentage of profits or which are contingent on results;(l)fails to disclose in an investment advice statement or otherwise a material fact known to him the disclosure of which is necessary to ensure that the investment advice statement is not misleading;(m)fails to report a material misstatement known to him to appear in an investment statement with which he is concerned in a professional capacity;(n)is guilty of gross negligence in the conduct of his professional duties;(o)expresses an opinion on any matter with which he is concerned in a professional capacity without obtaining sufficient information on which to base the opinion;(p)is an employee of an institution whose license is granted under the Capital Markets Act or any applicable law in Kenya and fails to keep the funds of a client in a separate account or fails to use such funds for purposes for which they are intended;(q)includes in any statement, return or form to be submitted to the Council any particular knowing it to be false; or(r)is found to engage in any other fraudulent acts; or(s)fails to do any other act which may be prescribed.(2)Subsection (1)(f) shall not apply in respect of information disclosed to the Institute in fulfillment of the requirements of a quality assurance programme provided for under section 13.(3)For the purposes of subsection (1)(j), the term "immediate family" includes a spouse, child, grandchild, parent, grandparent, brother, sister, uncle, aunt, first cousin or adopted child and the child of his or her brother or sister or of his or her adopted child, and such relations of the half-blood, or such child of such relations of the half-blood, as well as of the whole-blood.