Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 492989,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/492989/?format=api",
    "text_counter": 296,
    "type": "speech",
    "speaker_name": "Hon. Gaichuhie",
    "speaker_title": "",
    "speaker": {
        "id": 17,
        "legal_name": "Nelson Ributhi Gaichuhie",
        "slug": "nelson-gaichuhie"
    },
    "content": "pass before he can be registered. The Bill also provides that there shall be an ethics test that shall be conducted for one to be a member of the Analysts Investments Board. Under Clause 17, the Bill provides for ways in which a member may be disqualified – a provision of major importance. The Bill also provides for a committee to vet all those people who will be registered. If one does not pass the ethics or integrity test, one shall not be a member of the institute. We also noted that, under Clause 20 of the Bill, the drafters introduced the word “financial”, which is inconsistent with other clauses in the Bill. We thought that it may interfere with other professions like accountancy. So, we will bring an amendment to delete the word “financial” from “investment and securities” to make sure that they only deal with securities and investments, and not the financial part, which is taken care of by the accountants. The Bill also deals with disciplinary issues for the members of the institute. It provides for penalties and fines for anyone who may flout the institute’s regulations. Most importantly, the exact agency that will be taking care of them is the Institute of Certified Public Secretaries (ICPS). The Bill provides for protection from liability and financial provisions. In any entity established by law, financial provisions are very important as this goes a long way in creating confidence in the membership of the entity as well as promote accountability of its members. The Security Investment Analyst Bill, 2014 seeks to provide for the establishment – and provision of powers and functions – of the Institute of Certified Securities Investment Analysts (ICSIA) as a body corporate; and regulate the securities and investment analysts profession. According to international organisations for securities, the goal of securities regulation includes protecting investors, reducing systemic risks and ensuring that markets are efficient and transparent. Countries with vibrant security markets have effectively regulated and enforced institutions of the market. In Kenya, there is the Capital Markets Authority (CMA), which supervises the markets intermediaries including the securities and investments analysts who are equally important in terms of subjecting the regulation institution to meaningful accountability mechanism. It is in this line that it is critical to bring out the role of security analysts and intermediaries in the security markets to ensure that there is a link between the investor protection and the capital formation. The role of the intermediary reduces intense burden on market participants and this encourages investors. The capital market industry in Kenya is regulated by various laws. There is the Capital Markets Act; the Central Bank of Kenya Act; the Retirement Benefits Act; and the Insurance Act. The legal framework for the industry has organized and strengthened the institutional framework of the capital markets in Kenya. However, this legislation does not provide a framework for regulation of the professionals in the capital markets industry. The professionals in this area work in pension funds; they are financial advisors in the stock exchange; they are investment advisors in firms listed in the Nairobi Stock Exchange; and they also manage other investments by insurance companies. We think that, as advisors, they should be regulated and that is why we are forming this. The capital market, in the recent past, has been marred with challenges relating to professional ethics and integrity. We can recall that we had the Ngenye Kariuki Stock Exchange brokers and Nyaga Stock Exchange Brokers which went under due to poor The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}