Capital Markets Authority draft policy open to public debate
By Standard Reporter | August 6th 2015
The Capital Markets Authority (CMA) has announced the commencement of a 30-day public exposure of a draft Policy Guidance Note (PGN), which will be used to guide the operation of Exchange Traded Funds (ETFs) in Kenya.
The note and the activities commenced in line with it are subsequently expected to inform the development of a comprehensive legal and regulatory framework. An Exchange Traded Fund is an investment fund such as a unit trust that is traded on a securities exchange. An ETF can be a domestic or offshore product.
"The introduction of an ETF market in Kenya will offer investors an alternative option to invest in a pool of securities or other assets in a formal securities exchange environment. Additionally, ETFs offer a mechanism for reducing exposure to significant price fluctuations that sometimes characterise arbitrary buying and selling of securities," said CMA acting Chief Executive, Paul Muthaura.
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