This article is taken directly from the source cited.
Published December 2, 2020
The Capital Markets Authority says it is reviewing the Collective Investment Schemes regulations to strengthen the industry and make it responsive to market dynamics. The markets regulator, with the help of FSD Africa, has hired a consultant to review the Capital Markets (Collective Investment schemes) Regulations, 2001.
The review is meant to address concerns raised by stakeholders in the asset management sector and facilitate the creation of a vibrant fund management industry. Part of CMA’s 10 year master plan (2014-2023) is to create a robust asset management industry that will drive the deepening of the Capital Markets in Kenya.
In a statement to the press, CMA Chief Executive Officer Wyckliffe Shamiah said, ‘’We recognize that the development of a strong asset management sector is critical to creating investor confidence that boosts deepening of the capital markets. By putting in place a robust legal framework it will spur increased interest and participation by investors in Collective Investment Schemes.”
As the investment industry evolves, CMA sees the need to review the eligibility and regulatory requirements for different players in the Collective Investment Schemes industry. For example, new rules are needed for the emerging property development sector where funds are pooled to finance development projects like housing for low-income earners.
Source: Kenyan Wallstreet
