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{
    "id": 556236,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/556236/?format=api",
    "text_counter": 284,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Whereas over 25,000 agents have qualified for award of Certificate of Proficiency (COP) which is a requirement for licensing as an insurance agent, we only have 5,000 agents licensed by the Insurance Regulatory Authority (IRA). This is partly as a result of an oppressive requirement that agents must be recommended by an insurance company before they can be licensed. In order to expand insurance penetration, I propose to remove this requirement and allow IRA to license agents so long as they have attained the COP and met other licensing requirements. Real Estate Investment Trusts (REITs) and Asset Backed Securities (ABS) are investment vehicles that offer companies alternative sources of raising capital. In order to ensure tax neutrality with other forms of debt, I propose to exempt asset transfers and other transactions related to the transfer of assets into REITs and ABS from Stamp Duty. Retirement benefits schemes should be able to diversify their investments into new emerging investment vehicles in the capital markets in order to optimize returns to members. I, therefore, propose to create a new category in the Retirement Benefits Investment guidelines to allow schemes to invest up to 10 per cent of their assets in private equity funds and venture capital funds licensed by the Capital Markets Authority (CMA). I, however, propose to introduce in all classes of assets, except Government securities, a per issue limit of 15 per cent of assets and per issuer limit of 15 per cent of issue in order to mitigate potential risks. The distribution of surplus in defined benefits schemes is often a contentious matter and scheme members often do not benefit from the surplus, which only accrues to the employer. I, therefore, propose to amend the retirement benefits regulations to provide clear provisions as to treatment of the surplus, whereby, the employer will enjoy a contribution holiday in cases of on-going schemes, but in case of winding-up or scheme conversion, the surplus is to be shared equally between members and employers. To improve governance of retirement benefits schemes, I propose to introduce term limits such that trustees can only serve a maximum of two terms of three years. I also propose to reduce the period for preparation of annual audited accounts for retirement benefits schemes from six months to three months to ensure expeditious accountability to members. To strengthen the supervision of deposit-taking Sacco societies by the Sacco Societies Regulatory Authority (SASRA), I am proposing to amend the Sacco Societies Act to allow SASRA to undertake vetting of directors and key officers of those Sacco’s. In addition, I propose to extend the current information sharing framework for Sacco’s from the current inter-Sacco sharing of negative information, to also allow sharing of positive information as well as sharing with other financial institutions. In order to strengthen the fight against terrorism and money laundering, I am proposing amendments to the Proceeds of Crime and Anti-Money Laundering Act, in order to clarify the objectives of the Financial Reporting Centre (FRC) and strengthen its supervisory role. These changes are in line with the recommendations of the Financial Action Task Force (FATF) and will help improve our international rating following our removal from the FATF watch list in June 2014. The Government is aware that some Kenyans hold their wealth outside the country. To encourage those Kenyans to bring back their wealth, we are working on a mechanism to facilitate them bring back their money to support their investment activities 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."
}