ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
15. Specific requirements for approval
Edition: 2023-10-06 · In force
15. Specific requirements for approval
(1)The application under in regulation 14 shall be submitted together with—(a)the certificate of incorporation;(b)the memorandum and articles of association;(c)a statement of the un-audited accounts for the period of the accounting year ending not earlier than six months prior to the date of application and audited accounts for the preceding two years (where applicable);(d)the prescribed fees set out in the Second Schedule;(e)a business plan containing the particulars on—(i)the management structure;(ii)the directors, including one or more executive directors, their qualifications, addresses and details of other directorships;(iii)the shareholding structure which shall disclose whether any of the shareholders will have an executive role to oversee the day to day operations of the business;(iv)the shareholding structure of a dealer;(v)the evidence of paid up share capital of a minimum amount of fifty million shillings in the case of a stockbroker and twenty million shillings in the case of a dealer;(vi)the qualifications, experience and expertise of the chief executive must be relevant to effectively manage or operate the business of a stockbroker or dealer;(vii)the proposed management and qualifications of key personnel;(viii)the financial projections for three years;(ix)the proposed information technology and access to the trading network in compliance with the trading, clearing, delivery and settlement requirements of the securities exchange to which the applicant intends to be admitted as a trading participant under these Regulations;(xi)two business references;(xii)the proposed premises suitably located and equipped to provide satisfactory service to clients in the field of activity to which the licence relates or evidence acceptable to the Authority that such premises will be available;(xiii)the staff capable of providing professional services to clients in the field of activity to which the licence relates or evidence acceptable to the Authority that such staff will be available;(xiv)the proposed independent auditor; and(xv)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.(2)Every person who is, or is to be, a director, chief executive, manager or floor dealer of a stockbroker or dealer shall be fit and proper to hold the particular position that he holds or is to hold.(3)The applicant under paragraph (1) shall—(a)lodge a security of one million, five hundred thousand shillings or such higher amount with a securities exchange or a central depository as the Authority may determine, taking into account the financial position and settlement record of the applicant; or(b)provide a guarantee or a security to a securities exchange or a central depository in a form acceptable or approved by the Authority in respect of which it is a trading participant or has applied for admission as a trading participant.(4)The eligibility of a dealer’s licence shall be restricted to institutions committing funds for investment as principals in securities dealings.(10)An application for a stockbroker or a dealer license shall be accompanied by a 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.