The Capital Markets Authority (CMA) has licensed Stanbic Bank Kenya Limited as a Corporate Trustee.
In a notice issued on Tuesday, July 15, the Authority said the move is aimed at enhancing investor confidence and promoting the development of Kenya’s capital markets.
CMA stated that in this role, Stanbic Bank will be responsible for overseeing collective investment schemes, ensuring compliance, governance, and investor protection.
“In line with Regulation 31 of the Capital Markets (Collective Investment Schemes) Regulations, 2023, Stanbic Bank Kenya Limited has been licensed as a corporate trustee,” read the statement in part.
“These approvals reflect CMA’s ongoing commitment to strengthening market infrastructure, enhancing investor safeguards, and fostering a more vibrant and resilient capital markets ecosystem.”
CMA Licenses Stanbic Bank to Oversee Investment Schemes
The licensing of Stanbic Bank as a corporate trustee comes at a time when demand for Collective Investment Schemes (CIS) continues to rise, recently surpassing the Ksh 400 billion mark.
This growth is largely driven by both retail and institutional investors seeking professionally managed and diversified investment options.
Corporate trustees play a vital role in protecting investors’ interests by ensuring that fund managers operate in compliance with scheme documents and regulatory requirements.
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They are authorized to hold assets in trust for the benefit of others, particularly within employee pension schemes and other collective investment structures.
These trustees are essential for ensuring the proper management, administration, and oversight of such funds, thereby safeguarding the interests of beneficiaries.
To qualify as a corporate trustee, a company must be registered under the Companies Act, possess a minimum paid-up share capital of Ksh 10 million, have a registered office in Kenya, and include qualified personnel within its management and board of directors.
Key Aspects of Corporate Trustees in Kenya
Corporate trustees have a legal responsibility to act in the best interests of scheme beneficiaries by managing assets, ensuring adherence to scheme rules, and providing regular reports.
They oversee investment vehicles such as unit trusts and mutual funds, ensuring fund managers operate within established regulatory frameworks and scheme guidelines.
Additionally, corporate trustees are responsible for the overall management and administration of employee pension schemes, including asset management, benefit payments, and accurate record-keeping.
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Meanwhile, the authority licensed Fintrust Securities Limited as an Authorised Securities Dealer (ASD).
“To support efforts in improving liquidity within the fixed income market, the Authority has licensed Fintrust Securities Limited as an Authorised Securities Dealer (ASD),” CMA said.
As an ASD, Fintrust will be permitted to buy and sell fixed-income securities on behalf of clients, quote bid and offer prices for various instruments, and provide advisory services-contributing to greater price discovery and trading efficiency.
This includes holding the assets, overseeing the scheme’s operations, and ensuring adherence to regulations and best practices.
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