ADVOKS GLOBAL · KENYA
The Capital Markets (Corporate Governance) (Market Intermediaries) Regulations
13. Committees
Edition: 2022-12-31 · In force
13. Committees
(1)The board shall establish an audit committee and such other committees, as it considers necessary and specify their terms of reference, in writing, including the reporting procedures and a written scope of authority.(2)The audit committee shall, among others—(a)review regular internal audit reports prepared by the market intermediary’s internal auditor for management and management’s response to such reports;(b)review the market intermediary’s periodical financial statements and any other financial reports or financial information, when necessary;(c)review with management and external auditors,—(i)the audited and unaudited financial statements of a market intermediary before they are released to the public;(ii)the effectiveness of the documented risk management policy report for the assessment, monitoring and managing the possible risk exposure;(d)review the effectiveness of the internal controls of the market intermediary and other matters affecting the financial performance and financial reporting of a market intermediary, including information technology security and control;(e)review the external auditors’ proposed audit scope and approach;(f)monitor compliance of a market intermediary with its code of conduct and ethics;(g)consider the work plan of the market intermediary compliance activities;(h)regularly report to the board on the activities of the market intermediary, issues and related recommendations; and(i)institute and oversee special investigations, when necessary.(3)The board may, refer to a relevant committee established under paragraph (1), any matter for consideration and determination.(4)A decision of a committee shall not bind a market intermediary unless the decision has been to the presented board for consideration and ratification.