ADVOKS GLOBAL · KENYA
The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
27. Notification on compliance
Edition: 2022-12-31 · In force
27. Notification on compliance
(1)A market intermediary shall at all times comply with the Act, regulations made under the Act and with any other regulatory requirements prescribed by the Authority.(2)A market intermediary shall cooperate with the Authority and give the Authority all the reasonable assistance it requires to discharge its functions under the Act.(3)A market intermediary shall, immediately and in any event, within twenty-four hours inform the Authority of the occurrence of—(a)any event which could reasonably be expected to affect the Authority’s assessment of its fitness and propriety or that of its management and staff;(b)a material breach of the regulatory requirements applicable to the market intermediary or a material change in any information provided in support of the licence application;(c)a reduction in working capital or financial resource to below one hundred and twenty per centum, of the specified minimum or a reduction of fifty per centum in the working capital or financial resource since the previous report to the Authority;(d)any concern of the market intermediary that it may not be able to meet its obligations to clients when they fall due;(e)any shortfall in the funds held in the client account below the total obligations to clients;(f)any inability to comply with any instruction or direction of the Authority;(g)any misstatement in any return previously submitted to the Authority;(h)any fraud on the market intermediary or by any of its employees;(i)any disciplinary action against any of its key personnel;(j)any investigation, finding or conviction relating to the market intermediary or any of the key personnel of the market intermediary by a law enforcement agency, regulatory authority, or professional association;(k)any civil claim against the market intermediary that exceeds twenty-five per centum of the minimum financial resource requirement of the market intermediary; and(l)any action against it that may lead to its insolvency.(4)A market intermediary shall notify the Authority in not less than twenty-eight calendar days, before it—(a)changes its name, business name (if different), business address and nature of business of the market intermediary;(b)appoints a new chief executive, director or compliance officer;(c)appoints a new internal auditor;(d)decides to seek a licence from another regulatory authority in Kenya or abroad;(e)deleted by L.N. 105/2013, r. 2;(f)changes its capital structure substantially;(g)changes its ownership or substantial shareholding;(h)makes a substantial acquisition; or(i)decides to surrender its licence.(5)A market intermediary shall keep records of all returns sent to and correspondence with the Authority.