ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements)(General) Regulations, 2025
56. Fit and proper.
Edition: 2025-12-11 · In force
56. Fit and proper.
(1)Each person who is, or is to be, a director, chief executive officer or any other key personnel relevant to the business of a market intermediary shall be fit and proper to hold the particular position that he holds or is to hold.(2)In determining whether a person is fit and proper to hold any particular position, regard shall be had to—(a)their probity, competence and soundness of judgment in fulfilling the responsibilities of that position;(b)the diligence with which the person is fulfilling or likely to fulfill those responsibilities;(c)whether the interests of customers, are or are likely to be in any way threatened by his holding that position, by virtue of past convictions or offences, involvement in irregularities, misappropriation of funds or manipulation of securities markets transactions;(d)has contravened the provision of any law designed for the protection of members of the public against financial loss due to dishonesty or incompetence of, or malpractice by, persons engaged in transacting with securities;(e)was a director of an entity that has been liquidated or is under liquidation or statutory management;(f)has taken part in any business practice that, in the opinion of the Authority, was fraudulent, prejudicial or which otherwise discredited his methods of conducting business;(g)has taken part or been associated with any other business practice as would, or has otherwise conducted themselves in such manner as to, cast doubt on his competence and soundness of judgment;(h)has been convicted of an economic crime under the Anti-Corruption and Economic Crimes Act, the Anti-Bribery Act, and the Proceeds of Crime and Anti Money Laundering Act;(i)whether the person has satisfactory past performance or expertise in the nature of the business being conducted;(j)whether the person has an appropriate range of skills and experience to understand, operate and manage the regulated activities or financial affairs;(k)whether the person has the technical knowledge and ability to perform prescribed duties for which they are engaged, especially recognized professional qualifications;(l)membership of relevant professional institutions;(m)whether there are any indicators that the person will not be able to meet its debts as they fall due;(n)whether the person has been subject to any judgment debt or award that remains outstanding or has not been satisfied within a reasonable period;(o)whether the person has made arrangements with creditors, filed for bankruptcy or been adjudged bankrupt or had assets sequestered; and(p)whether the person has been able to provide the Authority with a satisfactory credit reference.