Download Financial Markets Law KASNEB Notes
CS PART 3 SECTION 5
COURSE OUTLINE
GENERAL OBJECTIVE
This paper is intended to equip the candidate with the knowledge, skills and attitudes that will enable him/her to comply with the laws and regulations governing financial markets.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
- Comply with the legal provisions relating to financial markets
- Comply with the licensing regulations of the securities exchange
- Comply with the guidelines and rules of the central depository system
- Identify the offences and penalties relating to trading in securities
- Demonstrate an understanding of the processes and law of anti money laundering
- Maintain securities registers, accounts and records
CONTENT
Regulation of financial services
- Historical development of law and regulation governing financial markets.
- Need for regulation
- Regulatory strategies in financial services
- Financial regulators
- Central Bank of Kenya
- Capital Markets Authority
- Deposit Protection Fund
- Insurance Regulatory Authority
- Retirement Benefits Authority
- Sacco Societies Regulatory Authority
- Institute of Certified Investment and Financial Analysts (ICIFA)
- Professional bodies in financial services
- Regulations in the international financial markets
- The International Organisation of Securities Commissions (IOSCO) principles for self regulation
Download Financial Markets Law KASNEB Notes
Regulation of capital markets
- Capital Markets Authority
- Investor Compensation Fund Board
- The Capital Markets Tribunal
- The Capital Markets Fraud Investigations Unit
- The International Organisation of Securities Commissions principles relating to the regulator
Regulation of financial services intermediaries
- Stockbrokers
- Stock dealers
- Investment banks
- Investment advisers
- Fund managers
- Credit rating agencies
- Collective Investments Schemes
- Custodians
- The International Organisation of Securities Commissions principles for credit rating agencies, collective investment schemes and market intermediaries
Central depository system
- The Central Depository and Settlement Corporation
- Establishment of the central depository
- Duties of a central depository
- Central depository agents
- Penalties for breach of duty
- Security measures
- Disclosure of information by central depository agents
- Central Depository Guarantee Fund
Immobilisation and dematerialisation
- Meaning
- Prescription of securities for immobilisation
- Transfer to a central depository or nominee company
- Operation of securities account
- Restriction of trade in eligible securities
Raising capital in the securities market
- Private offers/private placements
- Public offers
- Prospectus /information memorandum
- The International Organisation of Securities Commissions(IOSCO) principles relating to the issuer
Securities exchange
- Establishment
- Membership
- Rules of the securities exchange
- Listing requirements
- Self listing of the exchange
- Cross border listing
Download Financial Markets Law KASNEB Notes
Securities transactions
- Book entry of transactions and prohibition
- Records of depositors
- Suspended securities
- Charging or mortgaging of securities
- Bonus and rights issue
- Prohibition of dealings in book entry securities
- Insider trading
- The International Organisation of Securities Commissions (IOSCO) principles for enforcement of securities regulation
Securities registers, accounts and records
- Interests in securities
- Restrictions in securities transactions
- Register of interests in securities
- Maintenance of records
- Accounts statements
- Record of depositors
- Audit of accounts, records and registers
Corporate governance
- Meaning of corporate governance
- Application of corporate governance principles in financial markets
- Role of capital market authority in enforcement of corporate governance
- International Organisation of Securities Commissions (IOSCO) principles for cooperation in regulation
Prevention of money laundering
- Meaning of money laundering
- components of money laundering
- Anti money laundering legislation
- The Assets Recovery Agency
- Criminal Assets Recovery Fund
- Prevention of terrorism regulations
- Counter Financing of Terrorism Inter-Ministerial Committee: objectives, functions and powers
- The Financial Reporting Centre: objectives, functions and powers
- Due diligence requirements
- Wire transfers
