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The Capital Markets Authority (AMC) has warned members of the public against trading with foreign currency brokers (Forex) without a license because they will not be protected by law in case of breach of contract.
Managing Director Paul Muthaura (right with Henry Rotich, Secretary of the Treasury Cabinet) said that while financial technology and innovation are driving Kenyan capital markets to deploy more products, investors should beware of risks
. a broker commitment to adhere to and comply with specified regulatory requirements. This is very fundamental to promoting an efficient, fair and orderly functioning of the financial markets, "Muthaura said at the launch of EGM Securities, an online operator.
" It's for this reason that the AMC urge members of the public who wish to participate in foreign exchange online trading to deal only with licensed entities. In this way, they will have clear remedies in case of a complaint, which are not available when they are dealing with unlicensed companies, "he added.Murhaura asked online Forex resellers no allowed to seize the opportunity and apply for licenses to operate within a clear regulatory framework.
"As a regulator responsible for market surveillance, we are confident that EGM Securities The new regulations will require the licensing of entities that deal with online foreign exchange dealers, online foreign exchange dealers and non-intermediary fund managers.
Meanwhile, Secretary of the National Treasury Board, Mr. Rotich, launched the 2018/2023 Strategic Plan of the Autorité des marchés financiers, which aims to promote increased product availability, responsiveness of the regulatory framework and the influence of technology on the financial market value chain. the CS said that while capital market players have introduced new products and services, innovations still has low by international standards. "CMA players should make an extra effort and introduce other products and innovations," he challenged.
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