CMA joins world securities body.

April 6, 2009
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, NAIROBI, Kenya, Apr 6 – The Capital Markets Authority (CMA) has received a major backing in its bid to reign in rogue investors across borders with the body becoming a full signatory of the International Organization of Securities Commissions (IOSCO) Multilateral Memorandum of Understanding (MMOU) concerning consultation, cooperation and the exchange of information.

CMA Chief Executive, Stella Kilonzo says the MMOU is an international benchmark for co-operation and information sharing that builds on existing IOSCO principles to combat cross-border fraud and other securities violations.

“It is a practical tool which describes the particular types of information to be shared between securities regulators,” Mrs Kilonzo said. 
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For a regulatory authority to qualify to sign the MMOU, it must demonstrate capacity, legally and practically, to meet specific MMOU provisions which are essential to mutual assistance and the exchange of information in order to successfully enforce securities and derivatives laws.

She said the MMOU is a statement of commitment by a signatory of the IOSCO MMOU which provides a mechanism whereby the securities regulators offer mutual assistance and the exchange of information for enforcing and securing compliance with the laws and regulations of the relevant jurisdictions.

“Signatories to the MMOU must have the legal ability and willingness to gather information key to investigating and prosecuting enforcement matters, provide information to foreign counterparts as well as protect the confidentiality of the information,” Mrs Kilonzo said.

She noted that the partnership would help CMA collaborate with other securities regulators to enhance investor protection and combat the threat to market integrity posed by the increasing occurrence of cross border market misconduct.

By signing the MMOU, Kenya joins 52 other countries in the world that have been accepted as signatories to the MMOU out of over 100 countries that are members of the IOSCO.

Kenya was admitted at the same time as Guernsey and Montenegro.

The IOSCO has members representing more than 95 percent of the world\’s securities markets with presence in over 100 countries.

Kenya is the fourth country to be a signatory in the African continent after Morocco, Nigeria and South Africa.

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