AFRICA RISK NEWS
Readying the Financial Services industry in Kenya for the new normal
- August 3, 2016
- Posted by: africarisk
- Category: Education
Investor Confidence
The certification program is a demonstration of the CMA’s commitment to professionalism in the industry. This has the trickle effect of investor’s confidence in the services provided by the financial practitioners in Kenya. With the current foreign investment in the capital markets standing at 40%, foreign interest is bound to grow. As Kenya becomes competitive and attracts the international flow of funds, practitioners will engage with investors at the highest possible professional and ethical standards. The risks of poor advice can take many years to be felt. Consequently, investors are keen to avoid this by channelling their funds to markets with professional standards.
Diversified Financial Products
The Kenyan capital market is yet to experience a plethora of financial instruments besides the traditional stocks and bonds trading. If Nairobi is to achieve this goal, then financial instruments such as asset-backed securities like tradable mortgage debt, global depositary receipts (GDRs), and derivatives among others need to be actively traded. The trading of such securities is not the end game, together with it is the proper understanding of how these instruments work. By professionalizing the industry, the effective combination of knowledge, skills, and behaviour becomes the modus operandi. These instruments will deepen financial markets by ensuring liquidity as well as a diverse array of investment products for investors.
The launching of a derivatives exchange will be the launching pad that will see Nairobi take a leading role in this market. In a bid to work towards this end, the NSE has already signed five banks to clear derivatives prior to the launch of the derivatives exchange. While initial instruments will include the stock index and currency futures, imagination and innovation will be the only limit to the spectrum of financial products that can be offered at the market.
Demand for accredited trainers
In order for the certification process to run effectively and achieve its intended objectives, accredited professional trainers will play a critical role. Africa Risk Institute (ARI) is in the vanguard of the first team of accredited training providers for the SICP qualification in Kenya. As a professional services training and advisory provider, skills development across financial markets in Africa is our core mandate. We are currently training our second cohort of practitioners as well as one in-house class by one of the licensees. The ongoing classes are for Module one of the SICP i.e. The International Introduction to Securities and Investments Kenya (IISI-K) module. The second module – Regulations and Market practice module – will kick off in August. Classes will continue to be run on a monthly basis. However, our intake is on a rolling basis.
Our core focus at ARI is not for our clients to pass the exam, but rather leveraging on the experience of our qualified professional trainers to bring home the practical application of the knowledge gained in class through a flexible delivery model that appreciates the busy schedule of a modern professional. By working with a growing list of international certification partners such as CISI (Chartered Institute for Securities and Investment), and GARP (Global Association of Risk Professionals) we ensure that our trainees gain qualifications that are recognized internationally. Some of the popular programmes that we offer include the Capital Market Program, Investment Compliance Program, Corporate Finance Program and Investment Operations among others.
As the market gets prepared for the launch of the derivatives exchange, ARI is developing specialised and customised derivatives curriculum to equip dealers and other practitioners with the requisite knowledge. The expected kick-off date for the course is in September this year. Visit our website at www.africariskinstitute.com for more information on the range of professional and open courses available.
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