ADVOKS GLOBAL · KENYA
The Capital Markets (Online Foreign Exchange Trading) Regulations
5. Eligibility for a licence
Edition: 2023-10-06 · In force
5. Eligibility for a licence
(1)An applicant for a licence under regulation 4 shall be eligible for a licence if the applicant—(a)is a company incorporated in Kenya and limited by shares;(b)has a chief executive officer who—(i)is a fit and proper person in accordance with section 24A of the Act;(ii)has experience of not less than five years in the business of buying, selling, managing, or dealing in foreign exchange, foreign exchange futures or futures contracts; and(iii)is a member of a professional body;(c)has the necessary infrastructure including office space, equipment and staff to effectively discharge its activities;(d)in the case of a dealing online foreign exchange broker, has a person in charge of trading with at least three years' experience in foreign exchange trading, demonstrated ability to perform and in possession of certification from the Association Cambiste Internationale-Financial Markets Association or its equivalent;(e)has, as its directors, substantial shareholders and key personnel, persons who are fit and proper in accordance with section 24A of the Act;(f)has a minimum paid up capital, which shall not be impaired, of—(i)fifty million shillings, in the case of a dealing online foreign exchange broker;(ii)thirty million shillings, in the case of a non-dealing foreign exchange broker; or(iii)ten million shillings, in the case of a money manager; and(g)undertakes to maintain at all times, liquid capital of—(i)thirty million shillings or eight per cent of total liabilities whichever is higher in the case of a dealing or a non-dealing foreign exchange broker; or(ii)five million shillings or eight per cent of total liabilities whichever is higher; in the case of a money manager;(2)In addition to the eligibility criteria set out in paragraph (1), an applicant shall not be eligible for a licence if the applicant has not complied with the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations (sub. leg).