•The regulator issued a license to Vedman Capital Limited granting a go ahead to operate as an investment adviser.
•Other firms that received a nod from CMA are Pergamon Financial Services Limited, Diamond Trust Bank and Admirals Kenya Limited.
Image: HANDOUT
The Capital Markets Authority (CMA) has licensed five service providers as it looks to restore investor confidence and protection.
The regulator issued a license to Vedman Capital Limited to operate as an investment adviser.
The firm will primarily advice clients on investments in the capital markets and where an agreement exits with a client, manage a portfolio of investments for the purpose of investment.
“The issuance of licenses enhances our mandate of ensuring the proper conduct of all licensed persons and market institutions and in turn, facilitates investor protection,” noted CMA Chief Executive Wyckliffe Shamiah.
Other firms that have been cleared include Pergamon Financial Services Limited, Diamond Trust Bank and Admirals Kenya Limited.
Pergamon has been licensed as an Investment Bank and will operate as a non-deposit taking institution whose primary role is to advise on offers of securities to the public or a section of the public such as Initial Public Offers (IPOs).
They will also advise on takeovers, mergers, acquisitions, corporate restructuring of listed companies, privatisation and underwriting of securities issued or to be issued to the public.
Diamond Trust Bank has been licensed as an authorised depository.
Also referred to as a custodian, this is a bank licensed under the Banking Act or a financial institution approved by the Authority to hold in custody, for safekeeping, funds, securities, financial instruments, or documents of title to assets registered in the name of local investors or an investment portfolio.
The Authority has also licensed Admirals Kenya Limited as a non-dealing online forex trading broker.
Admirals Kenya Limited will act as a link between the foreign exchange market and a client in return for a commission in spreads but will not itself engage in market making activities.
Employees of the new licensees with direct dealings with clients will be required to undertake the Securities Industry Certification Programme (SICP) within one year from the date of licensing. The licences will remain in force unless otherwise suspended or revoked following the necessary due process.
Additionally, the Authority noted the grant of a stockbrokerage license to SPK Investment Services Limited to conduct the business of buying or selling of securities as an agent for investors.