NAIROBI, Kenya Jul 26- Domestic financial regulators have agreed to formalise a mechanism of working together through signing a Memorandum of Understanding (MOU) by the third quarter of 2009.
At the second joint meeting organised by the Capital Markets Authority for the board members of the Capital Markets Authority, Central Bank of Kenya, Insurance Regulatory Authority and Retirement Benefits Authority, the agenda centred on the areas of and nature of collaboration between the four institutions.
CMA Chairman Micah Cheserem, who termed the initiative as timely, noted it was driven by the interconnectivity of the financial regulators, arising from the various similar services offered by financial institutions.
“Borrowing from the lessons learnt from the recent global crisis, there is need for all financial sector regulators in Kenya to work together in a coordinated manner to oversee the overall financial sector through promotion of innovation and development of sound financial institutions for the stability of the overall financial system.”
The financial sector regulators reverberated on the need for the joint collaboration to foster dynamism and promote innovation in the financial sector.
They also agreed to collaborate in the sharing of information, supervision of market intermediaries, registration and licensing of market intermediaries to the extent allowed within their respective institutional mandates.
Other areas identified for collaboration include research for innovation and decision making, staff exchange programmes, joint financial literacy and public education campaigns, review of the legal and the compliance framework, consumer protection and compensation, investigation and enforcement, and joint capacity building initiatives.