GAZETTE NOTICE NO. 7439

PURSUANT to section 8 of the Statutory Instruments Act, 2013, the Capital Markets Authority notifies the public that a Regulatory Impact Statement on the proposed Draft Capital Markets (Collective Investment Schemes) Regulations, 2022 and the Capital Markets (Alternative Investment Funds) Regulations, 2022 has been prepared to assess the impact of the Regulation on the related business. The overarching objective of the frameworks is to address emerging issues, which have an underpinning on investor protection and market integrity. The Draft Capital Markets (Collective Investment Schemes) Regulations, 2022 provides for and regulates the public pooling of funds from investors in Kenya to invest in either the money market, balanced, equity or special funds. To achieve this, the regulations provide for inter alia: (a) Form of schemes that may be established (b) Approval of schemes (c) Offer documents and other information documents (d) Management of schemes (e) Eligibility criteria for the Trustee, Custodian and the Intermediary Service Platform Provider (f) Valuation, pricing and dealing (g) Investment powers (h) Performance and measurement reporting (i) Suspension ad termination of the schemes The draft Capital Markets (Alternative Investment Funds) Regulations, 2022 on the other hand provides for and regulates private pooling of funds from Kenyan investors for funds established in Kenya. The regulations aim to target sophisticated category of funds 3726 3726 which, employ diverse or complex strategies. Specifically, the regulations provide for inter alia: (a) Approval of the funds (b) Investment conditions and restrictions (c) General responsibilities (d) Inspection (e) Procedure for action in case of default The frameworks introduce an application fee and an annual regulatory fee, create an offence for breach of the regulatory provisions and impose penalties in cases of breach. The Regulatory Impact Statement and proposed Regulations are available on www.cma.or.ke, Regulatory Framework, Draft Regulations, upon request through comments@cma.or.ke or physically at the Capital Markets Authority offices during normal working hours. Any person likely to be affected by the proposed Regulations may submit their comments within fourteen (14) days from the date of publication of this notice to comments@cma.or.ke or to the address below: The Chief Executive, Capital Markets Authority, P.O. Box 74800–00200, Nairobi, 3rd Floor, Embankment Plaza, Longonot Road, Upperhill, Nairobi. Dated the 15th June, 2022. WYCKLIFFE SHAMIAH, MR/3883822 CEO, Capital Markets Authority.