KENYA: CMA Issues Final Policy Guidance Note on Exchange Traded Funds

Wednesday October 7 2015

The Kenyan Capital Markets Authority (CMA) has published the final Policy Guidance Note (PGN) that will facilitate the introduction of Exchange Traded Funds (ETFs) in Kenya. The PGN, which was first approved by the CMA Board in December 2014, has undergone extensive stakeholder consultation and engagement to ensure that the final product has the input of industry stakeholders. It also underwent a 30-day public exposure period in August 2015 to give an opportunity to stakeholders for further input and feedback.

The principles-based approval approach is in line with recent amendments to the Capital Markets Act, Cap 485A Laws of Kenya, effected in December 2013 that enhanced CMA’s role in facilitating market development in relation to the introduction of new products.

The publication by CMA paves the way for the licensing and approval of ETF stakeholders such as ETF promoters and market makers, leading to the eventual ETFs trading on the Nairobi Securities Exchange. This is expected to happen pending the development of a comprehensive Regulatory Framework to guide the operations of the new market sub-segment.

Click on the link above for further details.