Regulation of Financial Markets KASNEB Notes

Download Regulation of Financial Markets Notes

CIFA FOUNDATION LEVEL

COURSE OUTLINE

GENERAL OBJECTIVE

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to comply with the regulatory framework governing financial markets.

LEARNING OUTCOMES

A candidate who passes this paper should be able to:

  • Comply with the legal provisions relating to financial markets, including the laws of contract and agency
    • 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

Introduction to Law

  • Nature, purpose and classification of law
  • Sources of law
  • The court system; establishment, composition and jurisdiction;

Law of contract

  • Definition and nature of a contract
  • Classification of contracts
  • Formation of a contract
  • Terms of a contract
  • Vitiating factors
  • Illegal contracts
  • Discharge of contract
  • Remedies for breach of contract
  • Limitations of actions

Law of agency

  • Nature of agency
  • Formation of agency
  • Special classes of agents: factors, banks, brokers
  • Authority of the agent
  • Duties and rights of the principal and agent
  • Personal liability of the agent
  • Termination of agency

Regulation of financial markets

  • Historical development of the law and regulations 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

Regulations 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

Download Regulation of Financial Markets Notes

Regulation of financial market intermediaries

  • Stockbrokers
  • Stock dealers
  • Investment banks
  • Investment advisers
  • Fund managers
  • Credit rating agencies
  • Collective investments schemes

–           Custodians

–           The International Organization of Securities Commissions(IOSCO) principles for credit rating agencies, collective investment schemes and market intermediaries

Raising capital in the securities market

  • Types of shares
  • Private offers
  • Public offers; listing by introduction ,offer by tender and rights issue
  • Prospectus /information memorandum
  • The International Organisation of Securities Commissions(IOSCO) principles for issuers

Central depository system

  • The Central Depository Settlement Corporation
  • Establishment of the central depository
  • Duties of a central depository
  • Central depository agents
  • Rules and regulations of the central depository
  • Remedies for breach of duties
  • 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 exchange
  • Establishment
  • Membership
  • Rules
  • Listing and post listing requirements
  • Self Listing of the exchange
  • Cross border listing

Securities transactions

  • Book entry of transactions and prohibition
  • Records of depositors
  • Suspended securities
  • Suspension and delisting of 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
  • Types of securities accounts
  • 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
  • The role of capital market authorities in enforcement of corporate governance
  • The International Organization of Securities Commissions(IOSCO) principles for cooperation in regulation

Prevention of money laundering

  • Meaning of money laundering
  • Component of money laundering
  • Anti money laundering legislation
  • Anti Money Laundering Advisory Board
  • 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

Emerging issues and trends

Download Regulation of Financial Markets Notes

Sharing is Caring-Click to Share

Written by 

One thought on “Regulation of Financial Markets KASNEB Notes”

Leave a Reply

Your email address will not be published. Required fields are marked *