ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
77. Eligibility requirements and Grant of a license
Edition: 2023-12-15 · In force
77. Eligibility requirements and Grant of a license
(1)An application for licensing as an intermediary service platform provider shall be accompanied by the following—(a)evidence of the entity’s incorporation or establishment;(b)a written agreement with a licensed fund manager which shall at the minimum set out the following—(i)roles to be played by the parties including their rights and duties;(ii)extent of liabilities of the parties to the agreement;(iii)dispute resolution mechanisms;(iv)complaints handling procedures; and(v)investor protection mechanisms;(c)a business plan detailing the nature of the service platform, how the platform will help delivery value to the capital markets and financial projections among others;(d)evidence of adequate capital, office and human resources necessary for the efficient conduct of its business and operations;(e)details of the organization structure and profiles of the directors, shareholders, management and other key personnel who are fit and proper as provided under section 24A of the Act;(f)detailed information of the platform to be used including system capacity and security measures, its user terms and condition and evidence of its functionality;(g)business continuity and disaster recovery plan;(h)record keeping procedures including audit trail for daily operations to meet emergencies;(i)adequate risk management framework that includes details of its fraud detection and prevention measures and a risk matrix and mitigation measures;(j)data protection policy in compliance with the relevant laws;(k)policy on prevention of anti-money laundering and terrorism financing;(l)cyber security policies and procedures;(m)complaint management policies and procedures that includes details on complaint lodging, acknowledgment and resolution;(n)risk management policies and procedures;(o)the licensing fees set out in the Seventh Schedule; and(p)any other additional documents or information as the Authority may require.(2)The Authority shall, if satisfied that an applicant has met all the requirements for licensing and upon payment of the fees set out in the Seventh Schedule, grant a licence to operate as such.(3)The intermediary service platform provider shall be required to pay an annual regulatory fee as set out in the Seventh schedule.(4)A licence granted shall remain valid unless suspended or revoked by the Authority in accordance with section 26 of the Act.