Regulatory Alerts2015-09-28
Policy Guidance Note for Exchange Traded Funds in Kenya
This guidance note establishes the preliminary regulatory framework for the issuance, listing, and operation of Exchange Traded Funds (ETFs) in Kenya, mandating that all ETF issuers obtain Capital Markets Authority (CMA) approval and maintain comprehensive disclosures. Issuers are required to appoint licensed market makers for liquidity provision and trustees for investor protection, while ensuring all fund units are traded in Kenya Shillings and fully backed by equivalent assets. Furthermore, the framework imposes strict ongoing reporting, transparency, and risk mitigation obligations on issuers, subject to oversight by both the CMA and relevant listing exchanges.
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