ADVOKS GLOBAL · KENYA
Prevention of Fraud (Investments) Act
19. Exemption of certain dealers
Edition: 2023-12-11 · Not commenced
19. Exemption of certain dealers
(1)The Minister may by order declare a person to be an exempted dealer for the purposes of this Act subject to the following conditions being fulfilled so long as the order is in force, that is to say—(a)the main business of such person must consist of either or both of the following activities—(i)carrying on some business other than the business of dealing in securities;(ii)dealing in securities in one or more of the ways mentioned in subsection (2) of this section; and(b)the greater part of dealing in securities done by him in Kenya otherwise than in one of the ways referred to in subparagraph (ii) of paragraph (a) of this subsection must be effected with, or through the agency of—(i)the Central Bank of Kenya or an exempted dealer;(ii)the manager or trustee of a unit trust;(iii)a person acting on behalf of a person mentioned in subparagraph (i) or (ii) of this paragraph;(iv)the holder of a licence, or be effected, with the consent of the Minister, through the agency of a member of a stock exchange outside Kenya.(2)The ways of dealing in securities referred to in subparagraph (ii) of paragraph (a) of subsection (1) of this section are—(a)issuing any document which is, or is deemed to be a prospectus within the meaning of the Companies Act (Cap. 486);(b)making or offering to make with any person an agreement for, or with a view to, the underwriting of securities;(c)making any invitation to persons to subscribe for securities, or to purchase securities on the first sale thereof;(d)making any invitation to persons to subscribe for, or purchase, securities of the Government of Kenya or the Government of any other country;(e)effecting any transaction with a person whose business involves the acquisition and disposal, or the holding, of securities, being a transaction with that person as principal.(3)If, with respect to any exempted dealer, the Minister considers that the order declaring him to be an exempted dealer ought to be revoked on the ground that—(a)the conditions subject to which the order was made have not been fulfilled in his case; or(b)that the circumstances relevant to the making of the order have materially changed since the making thereof, the Minister may serve on such dealer a written notice that he is considering revocation of the order on that ground, specifying particulars of such non-fulfilment or change, and inviting the dealer to make to the Minister, within the period of one month from the date of the service of the notice, any representations which he may desire to make with respect to such proposed revocation, and the Minister may revoke the order after the expiration of the said period but, before deciding whether to revoke the order or not, shall take into consideration any representations so made.(4)The Minister shall cause to be published at such times and in such manner, as he thinks proper, the names and addresses of all persons who are for the time being exempted dealers.