Regulatory Alerts2017-01-01
Policy Guidance Note on Asset Backed Securities (2017)
The Capital Markets Authority of Kenya issued this February 2017 guidance note to clarify the regulatory framework for issuing Asset Backed Securities under the Capital Markets Act. It mandates that issuers structure their Special Purpose Vehicles and asset pools to comply with Kenyan law, classifies offers into restricted or limited restricted categories, and requires either an approved prospectus or a detailed offering memorandum. The note supersedes the conflicting 2007 ABS Regulations during a legislative transition period, providing detailed standards for trustees, servicers, cash flow modelling, and true sale criteria to ensure market compliance.
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