ADVOKS GLOBAL · KENYA
The Capital Markets (Registered Venture Capital Companies) Regulations
4. Application
Edition: 2022-12-31 · In force
4. Application
An application for registration shall be made by a venture capital company in the prescribed form set out in the First Schedule and shall be accompanied by the following—(a)a certified copy of the applicant's certificate of incorporation or certificate of compliance;(b)a certified copy of the applicant's memorandum and articles of association;(c)a certified copy of the board resolution approving the application for registration;(d)details of the investment policy in respect of each fund to be operated by the applicant setting out the following particulars—(i)investment objectives;(ii)minimum and maximum investment amounts in any single enterprise;(iii)investment rules, investment process (including minimum commitment and investment periods and procedures for draw down) and exposure limits to individual eligible venture capital enterprises;(iv)preferred mode of divestiture from eligible venture capital enterprises;(v)disclose a clear strategy for the diversification of investments in eligible venture capital enterprises,(vi)policies on fees and charges;(vii)profile of companies invested in (where applicable); and(viii)details of risks factors that are specific to the chosen investment sectors, or sectors intended to be invested in;(e)a letter of acceptance of the appointment from the fund manager in the prescribed Form set out in Fourth Schedule;(f)the management agreement between the registered venture capital company and the fund manager containing the particulars required under Regulation 10;(g)audited financial statements of the applicant for the last three financial years immediately preceding the date of application (where applicable), provided that where at the date of the application is—(i)more than three months, but less than six months have lapsed since the end of the immediately preceding financial year in respect of which the latest audited financial statements relate, the applicant shall provide unaudited accounts for the first three months following the end of the financial year;(ii)more than six months have lapsed since the end of the immediately preceding financial year in respect of which the audited financial statements relate, the applicant shall provide interim audited financial statements for the first six months following the end of the financial year;(iii)more than nine months have elapsed since the end of the immediately preceding financial year in respect of which the latest audited financial statements relate, the applicant, shall in addition to the interim audited financial statements required under (ii) above, provide unaudited accounts for the three months period following the end of the six months to which the interim audited financial statements relate;(h)a declaration by the directors in the prescribed form set out in the Third Schedule;(i)declarations by each of the directors in respect of questions 18 to 24 of the First Schedule;(j)a bank reference from a commercial bank duly licensed under the Banking Act (Cap. 488) stating the length of its relationship with the applicant and containing a statement on the manner in which the applicant has managed its account(s) (where applicable);(k)business references from at least two companies in which the applicant has invested explaining the nature and duration of the investment(s) and the contribution applicant has made to the business of the company providing the reference (where applicable);(l)the prescribed application fee; and(m)any further information that the Authority may deem necessary to determine the application.