The Institute of Certified Investment and Financial Analysts (ICIFA) has cautioned unlicensed financial analysts, dealers, and fund managers that they could face a 2-year jail term or a fine of Sh500,000 while repeat offenders could get a fine of Sh1 million and a public reprimand in the Kenya Gazette and local newspapers.
The Institute has the mandate to protect investors’ wealth from unlicensed investment and financial analysts. ICIFA also has the power to discipline rogue financial and investment analysts.
“In accordance with section 20 (2), any person who practices as an investment and financial analyst without being registered as a certified investment and financial analyst and does not hold a practising certificate and valid annual license commits an offence,” ICIFA warned in a statement in the local dailies.
ICIFA also wants all employees from licensed and financial investment analysis firms to hand over their details to them by 31 March 2018 for registration.
Interestingly, the application for licenses has been slow since the law was effected in 2015. According to ICIFA, only 1 in 5 financial analysts had applied for licenses by April 2017.
In June 2017, the Capital Markets Authority (CMA) ordered all unlicensed financial and investment analysts to submit their applications to ICIFA in order to eliminate those practising illegally.
CMA and ICIFA have been working together to ensure that all investment and financial analysts operate within the law. The two bodies have also been working towards increasing expertise in market analysis-related fields.
ICIFA was established in line with the Investment and Financial Analysts Act 2015. The Act states: “A person wishing to be registered as an investment and financial analyst shall apply to the registration committee.”