Investment institute vows to deregister errant members

ICIFA Chairman Job Kihumba during the AGM yesterday. [Courtesy]

The Institute of Certified Investment and Financial Analysts (ICIFA) has added its voice on ongoing purge on corruption by vowing to discipline any of its members found culpable.

In sentiments shared during members’ Annual General Meeting yesterday, Icifa council said that any of its members found engaging in professional malpractices or unethical conduct will be de-registered and prosecuted.

According to Icifa chairman Job Kihumba, the institute will rely on the Investment and Financial Analysts Act as well as other existing laws to stem out errant members.

“Disciplinary action could lead to expulsion, de-registration and de-licensing. We will work closely with industry regulators to help identify and take action for any misconduct and unethical practice,” said Mr Kihumba.

The move by Icifa follows a concern regarding some players in the financial markets who are alleged to be conduits of corruption deals. Currently, there is a tussle between Capital Markets Authority (CMA) and some bond dealers who are being accused of using insider information to make money at the expense of customers.

According to Icifa, expelled members will not be able to transact any business on behalf of clients as financial and investment analysts. Equally, de-registered members will be banned from practising.

The council vowed to work closely with industry regulators such CMA to help identify and take action for any misconduct in the financial market.

Legal action

Commenting on non-members who mishandle investment transactions on behalf of clients, Mr Kihumba said that such will also be liable to legal action as provided for in the institute’s Act.

The institute commended the National Treasury for proposing a strategy to deal with misconduct and unfair practices within financial institutions.

However, it called on Parliament, private sector institutions and policy think tanks to consider fine tuning the Financial Markets Conduct Bill to address the gaps in enforcement.  

“Creation of additional formal structures to deal with each challenge may not necessarily yield the desired results. It is however important to strengthen all regulatory and governance institutions,” said the institute.