Kenya - Obtain Authorised Securities Dealer License

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Procedure

Apply In-Person:

1. To apply for a securities dealer license in Kenya, the applicant has to contact the Capital Markets Authority (CMA) offices to make the application.
2. Here the applicant will be given an application form by a licensing officer to fill and submit.
3. Fill in the application and attach the required documents. A list of the can be found under the "Required Documents" section of this page.
4. Submit the filled in application form and required documents to the licensing officer and pay the required application fees.
5. Details of the application fees to be paid can be found under the "Fees" section of this page. Kindly note that the application fee of Kshs 2500 and should be submitted to the Authority by way of a company cheque
6. The authority will review the application regarding any areas of noncompliance with the license requirements which the applicant is required to address.
7. In addition, the Authority conducts a premise inspection to ensure that the applicant has adequate technical and administrative capacity to carry out the business for which the license is sought.
8. In the review of license application, the Authority conducts due diligence to ensure that the directors and key personnel of a prospective licensee are fit and proper to hold their respective positions.
9. The application is considered by the Board of the Authority for a final determination of the application.
10. Upon successful review and approval of the application the applicant will be advised accordingly and required to settle the requisite license approval fee. Details of the license fees to be paid can be found under the "Fees" section of this page.
11. The authority will advise the applicant when the License Certificate is available for collection.
12. The processing time is usually 25 days to obtain the license.

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Required Documents

• Duly completed Application form 1 in duplicate
• Certificate of incorporation.
• Memorandum and Articles of Association.
• Unaudited accounts for the period of the accounting year ending not earlier than 6 months prior to the date of the application.
• The applicant’s audited accounts for the preceding two years (where applicable).
• Evidence of financial capability or investment capital of a minimum of Kshs. 30 million in cash or portfolio of securities and listed shares.
• Business plan.
• Physical inspection of facilities.
• Due Diligence on the Chief Dealer.
• Fit and Proper documentation for Directors and Key Personnel including: -
  • Duly filled and executed Fit & Proper Forms.
  • Duly certified Police Clearance Certificate copies.
  • Duly certified National Identification Cards or Passport copies.
  • Comprehensive Curriculum.
  • Passport photographs.
• Application Fees.

AUTHORISED SECURITIES DEALER LICERNSE CHECKLIST

Office Locations & Contacts

Capital Markets Authority - Head Office
Embankment Plaza, 3rd Floor
Longonot Road, off Kilimanjaro Avenue, Upperhill
P.O Box 74800 - 00200
Nairobi
Kenya
Tel: +254 20 2264000/ 2264900 / 2221869
Cell: +254 722 207767
Email: [email protected]
Website link

Eligibility

• Individual/ companies wishing to operate as a securities dealer in Kenya is eligible to make the application.

Fees

• Application fee - Kshs. 2,500
• Licence fee - Kshs. 100,000

Validity

• The license is valid for one year.

Documents to Use

• Form 1

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The processing time is 25 days.

Related Videos

Videos explaining the procedure or to fill the applications.
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Please remove the "&" inside the tags during implementation.
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sevenload, viddler, vimeo, youku, youtube
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e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M".

Instructions

• Applications should be submitted to the Authority by way of a hard copy submission.
• The Application Form is to be submitted to the Authority in support of a License Application. Kindly note that the application fee of Kshs 2500 should be submitted to the Authority by way of a company cheque.
• Upon submission of the application, the Authority will review the same and revert to applicants regarding any areas of noncompliance with the license requirements which the applicant is required to address. In addition, the Authority conducts a premise inspection to ensure that the applicant has adequate technical and administrative capacity to carry out the business for which the license is sought.
• In the review of license applications, the Authority conducts due diligence to ensure that the directors and key personnel of a prospective licensee are fit and proper to hold their respective positions.
• The application is considered by the Board of the Authority for a final determination of the application.
• In the review process the Authority always reserves the right to request for any additional information that may be required to adequately evaluate the application. The Authority may also convene meetings with the applicant's technical team to facilitate progression of the application if need be.

Required Information

• Name of company
• Registered office
• Date of incorporation
• Location, address and telephone number of principal office
• Location, address and telephone number of branch offices and Nominee companies
• Details of capital structure
  • Nominal capital (KSh.)
  • Number of shares
  • Paid-up capital (KSh.)
• Shareholders details
• Directors details
• Chief Executive and other key personnel details
• Particulars of shares held by directors in other companies
• Particulars of two business referees of the applicant
• List the office facilities of the applicant

Need for the Document

• One needs a license issued by the CMA to operate as a securities dealer in Kenya.
• No person shall establish, maintain or hold himself out as maintaining a securities dealer in Kenya except with the prior written approval of the Authority.
• A person who establishes, maintains or hold himself out as a securities dealer without an approval and license commits an offence and shall, on conviction, be liable to a fine not exceeding ten million shillings, or to imprisonment for a term not exceeding ten years.

Information which might help

• The Authority shall close any applications that remain outstanding for a period of six (6) months from the date of submission of the application to the Authority.
• Upon approval of the application the applicant is advised accordingly and required to settle the requisite license approval fee.
• In addition, the Authority will advise the applicant when the License Certificate is available for collection.
• “Dealer” means a person who carries on the business of buying, selling, dealing, trading, underwriting or retailing of securities as principal.
• “Dealing in securities” means making or offering to make with any person, or inducing or attempting to induce any person to enter into or to offer to enter into –
  • any agreement for or with a view to acquiring, disposing of, subscribing for or underwriting securities; or
  • any agreement the purpose or intended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the price of securities.
• “Securities” means –
  • debentures or bonds issued or proposed to be issued by a government.
  • debentures, shares, bonds commercial paper or notes issued or proposed to be issued by a body corporate.
  • derivatives including futures and options contracts on securities, indices, interest or other rates, currency, futures or commodities.
  • any unit, interest or share offered under a collective investment scheme;
  • any instruments commonly known as securities but does not include –
    • bills of exchange.
    • promissory notes.
    • certificates of deposits issued by a bank or financial institution licensed under the Banking Act

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• CMA site
• Central Depositories Act
• Capital Market Act
• CMA Service Charter

Others

Due Diligence Documentation

• The Authority is required to ensure that every person who is, or is to be, a director, chief executive, manager and key personnel of a licensee is fit and proper to hold the particular position that he holds or is to hold.
• In determining the fitness and probity of the directors, chief executive, managers and key personnel of a proposed licensee the Authority requires applicants to submit the following documentation.
• A certified copy of the appointees national identity card/passport, Comprehensive CV of the directors or key personnel (as defined under Regulation 53(2) of the Capital Markets (License Requirements) (General) Regulations, 2002; Certified copies of their Police Clearance Certificates from the Criminal Investigations Department (or its equivalent in other jurisdictions); and The Duly completed Fit and Proper form. (This can be downloaded within this section of the website.)