Stockbrokerage Agents to be registered countrywide

Posted on July 14, 2011

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Bizextras has received the press statement below.
Our view is that this is a good step in streamlining the operations of our capital markets. It is a welcome move especially with more Initial Public Offers lined up, it will create investor confidence in the people they are entrusting with their finances.

Read on and let us know your comments…

Brokers’ Association Registers Stockbrokerage Agents

Nairobi, July 14, 2011…

Kenya Association of Stockbrokers and Investment Banks (KASIB) has embarked on registration of all stockbrokerage agents in the country.

The move is among a raft of measures aimed at improving liquidity in the capital markets and bolstering investor confidence.

“KASIB would like to take stock of all agents as they mostly interact with the bulk of investors” said Mr. Michael Gichohi, the KASIB Chairman.

He said most of investor complaints are those emanating from transactions involving agents.

“This a move towards regulating stockbrokerage agents as they are responsible for the bulk of complaints lodged by investors.”

The accreditation process will involve training of agents, which is a mandatory requirement. The association has already prepared the syllabus and preparation of the teaching materials and hand-outs is underway.

Stock agents are usually registered by respective stockbrokers to increase their market outreach. However, to augment self-regulatory mechanisms the KASIB Board resolved to maintain a register of agents.

“KASIB training and registration will be the minimal requirement for individuals to be accredited as stockbrokerage agents.”

Upon completion of the exercise, a list of the accredited agents will be published in national dailies and the association urges investors to deal with registered agents.

Registered agents will be required to abide by a code of ethics developed by the association.

The association has noted that some agents move from one Stockbroker or Investment Bank to another, replicating malpractices along the way. But in the dawn of self-regulation by brokers their names will be listed on the KASIB website and circulated to other market stakeholders.

Registered agents will be issued with a certificate which will be displayed at their premises and granted to use the KASIB logo on their stationary.

For more information, please contact:

Mr. Michael Gichohi,

Chairman, KASIB

020 2371470

Or

Willie Njoroge

0722-511049

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