ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
71. Investor Compensation Committee
Edition: 2023-10-06 · In force
71. Investor Compensation Committee
(1)The Authority shall establish an Investor Compensation Committee to deal with claims from investors.(2)The Compensation Committee shall include the Chairman and the Chief Executive of the Nairobi Stock Exchange and any other persons who may be appointed by the Authority to be members of the Committee.(3)The Compensation Committee shall, after examination of the evidence produced in support of a claim, make any recommendation to the Authority with respect to whether to allow or disallow such claim and, if the recommendation is to allow the claim, an assessment of the amount payable including any pro rata allocation of any such limit prescribed for every defaulting stockbroker or dealer or the size of the fraud, as applicable.(4)While determining the amount to be paid in compensation to an Investor, the Compensation Committee shall take into account the total amount available in the Compensation Fund.(5)The Authority shall give notice of its decision to the investors in writing or by other means of appropriate notification.