NAIROBI, Kenya, Apr 21 – The Capital Markets Authority (CMA) has launched international certification standards for practitioners in the capital markets industry.
The move is meant to ensure that industry players operate with high standards and apply the best practice as Kenya takes position as an international financial centre.
Financial Sector Deepening Africa (FSD Africa) has provided funding for the development of the curriculum and examination for the International Introduction to Securities and Investment (IISI) program IISI- K certification to be awarded by the Chartered Institute of Securities and Investment.
This is part of a strategic partnership between FSD Africa and the CMA in which FSD Africa will invest £ 1.1 million (Sh159.2million) in a technical assistance programme to strengthen the CMA’s institutional capacity and support the development of Kenya’s capital markets.
The launch comes after signing of a Memorandum of Understanding (MoU) with the Chartered Institute for Securities and Investment (CISI) in September 2014.
CMA Acting Chief Executive Paul Muthaura says the introduction of certification standards aimed at creating a highly skilled talent pool, is aligned to the Capital Market Master Plan, the 10-year blueprint for the Kenyan capital markets industry, and the ambition of the country to become a regional and international financial centre.
“The certification programme will ensure that practitioners in the capital markets industry have the requisite skills and apply best practice as Kenya takes its position as the hub for the African capital markets. For Kenya to be competitive and attract international flow of funds client facing staff within capital market intermediaries need to adopt international certification standards to support the introduction of more diversified products in the market, as well as to ensure that engagement with investors is consistent and meets the highest possible professional and ethical standards,” he said.
Muthaura added that the adoption of Chartered Institute of Securities and Investment’s International Introduction to Securities and Investment (IISI) program, as an industry recognised certification standard for Kenya is underpinned by the intention to support its adoption within the wider East African Community (EAC) region, with the recognition that capital market players are increasingly operating across borders.
The curriculum for Stage One, IISI (Kenya), has already been developed.
The first cohort of market candidates went through training and sat for the examination in November 2015 that included 13 CMA staff members and eight officials from various training institutions in Kenya.
The curriculum for stage two which will cover local conduct of business standards and market regulations, under the Kenyan regulatory framework, will be completed by June 2016.
The Authority issued a circular to all market licensees on Monday November 9th, 2015 informing them of the market certification and competency standards to be adopted pursuant to Regulation (19)3 of the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations 2011.