ADVOKS GLOBAL · KENYA
The Capital Markets Authority Rules
22. Rules relating to public communication
Edition: 2022-12-31 · In force
22. Rules relating to public communication
(1)All advertisements, sales literature and other communication with the public, by persons licensed under the Act and financial journalists shall be factual and any statements made shall be for the purpose of assisting in the evaluation of a particular security, type of securities, promoting the industry, service offered or the desirability of investing in securities in general.(2)No material fact or qualification may be omitted if such omission would cause the advertisement or sales literature to be misleading in the light of the context of other information presented.(3)In making a recommendation with respect to any security, a licensed person shall disclose the price at the time of the recommendation and, if applicable, the fact that—(a)he makes a market in the securities recommended; and(b)he or an associated person owns more than a nominal amount of such securities.(4)Any offer of a report, analysis or other service without any charge must be provided as such without any condition or obligation other than what is clearly described in the offer.(5)No claim with respect to research or analysis facilities or capacity may be made beyond those actually possessed by the person making the claim.(6)All statements made in advertising directed to the general public shall be supported by source of facts.(7)Every company whose securities are traded on, or subject to the rules of, a securities exchange in Kenya, shall disclose promptly to the securities exchange any material information that may affect the price of their securities or influence investment decisions, including the following—(a)a merger, acquisition or joint venture;(b)a stock split or stock dividend;(c)earnings and dividends of an unusual nature;(d)the acquisition or loss of a significant contract;(e)a significant new product or discovery;(f)a change in control or a significant change in management;(g)a call of securities for redemption;(h)the public or private sale of a significant amount of additional securities;(i)the purchase or sale of a significant asset;(j)a significant labour dispute;(k)a significant law suit against the company;(l)establishment of a programme to make purchases of the company's own shares;(m)a tender offer for another company's securities; or(n)any other peculiar circumstances that may prevail with respect to, the company or the relevant industry.