Online forex trader SIB is compliant, regulator says

The CMA said it would take appropriate action against people illegally conducting online foreign exchange trade.

Photo credit: File | Nation Media Group

The Capital Markets Authority (CMA) has confirmed that the Standard Investment Bank (SIB) online foreign exchange trading business is compliant following claims that it had breached the law.

The regulator granted SIB Kenya’s first money manager licence in December 2018, which allows it to manage investments for its online forex trading clients and develop an appropriate investment strategy.

“In line with our consumer protection mandate, we assure all stakeholders including investors that the SIB operations under the Money Manager licence are in compliance. We also undertake regular monitoring and surveillance of all licenced entities. We confirm that the compliance levels of the operations of SIB under the Money Manager licence meet the standards,” said CMA acting CEO Wyckliffe Shamiah.

Trading as Mansa X, the investment firm trades stock indices, currencies and commodities for clients who require a minimum of Sh250,000 to tap the global market.

“SIB also communicates clients’ buy and sell order positions through a licensed online forex trading broker, to meet clients’ investment goals. The money manager conducts financial analysis and monitors foreign exchange portfolio investments on behalf of its clients,” explained Mr Shamiah.

CMA has in the past warned Kenyans against online foreign exchange trading through unlicensed entities, saying they risked losing investments.

Under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, there are three types of licences – the dealing foreign exchange broker, the non-dealing foreign exchange trading broker, and a money manager licence.

CMA has also licensed FXPesa, Scope Markets, Pepperstone Markets, and Exinity Capital East Africa as non-dealing online forex brokers.

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