ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements)(General) Regulations, 2025
21. Application for licence
Edition: 2025-12-11 · In force
21. Application for licence
(1)Any person who wishes to carry on business as a broker-dealer shall apply to the Authority for a licence in Form 1 as set out in the First Schedule and pay the fee prescribed in the Sixth Schedule.(2)The application under subregulation (1) shall be accompanied by—(a)a certificate of incorporation;(b)memorandum and articles of association;(c)the audited accounts for the preceding two years where applicable and unaudited accounts for the period of the accounting year ending not earlier than six months prior to the date of application;(d)a business plan containing the particulars set out in the Second Schedule of these Regulations;(e)evidence of paid-up share capital as provided under regulation 23(1);(f)a statement on the qualifications, experience and expertise of the chief executive officer and key staff that are relevant to effectively carry on the business of a broker-dealer;(g)the organisational chart of the broker-dealer;(h)the proposed information technology and access to the trading network that complies with the trading, clearing, delivery and settlement requirements of the securities exchange to which the applicant intends to be admitted as a trading participant;(i)the proposed premises that are suitable for the provision of satisfactory service to clients or evidence acceptable to the Authority that such premises will be available;(j)evidence of staff capable of providing professional services to clients in the field of activity to which the license relates or evidence acceptable to the Authority that such staff will be available;(k)letter from the securities exchange stating that the applicant meets all the relevant requirements of that securities exchange and that the securities exchange would admit the applicant if licensed by the Authority;(l)the proposed independent auditor; and(m)a declaration that no person is a director or holds beneficial interest either directly or indirectly in more than one trading participant of a securities exchange.(3)Each current or proposed director, chief executive officer or any other key personnel relevant to the business of a broker, dealer, stockbroker or dealer shall be fit and proper to hold the particular position that he holds or is to hold.22. Authorised functions of broker-dealers
A broker-dealer shall be a company limited by shares and shall be eligible to carry out all or any of the following functions—(a)engaging in the business of stockbroker;(b)engaging in the business of a dealer; and(c)promoting or arranging underwriting of issuance of securities.