Brokers know the complete understanding of the stock market and hold considerable experience in trading in stocks. Thus they are able to give advice and counsel their clients about their investments and carry out transactions at the stock market. Requirements For Stock Broker License
However, there are certain prerequisites for becoming a certified stock broker at the stock exchange and carry out transactions as well. You need to hold a stockbroker license in order to trade at the stock exchange. Unless you hold this full broker license, you are not authorized to trade at the stock exchange.
You do not need a degree for becoming a stock broker but most of the brokers do have a degree. But you need to pass the General Securities Registered Representatives Examination to obtain a stockbroker license. Initially you need to work with a firm for nearly four months or more to be eligible to give the exam. This minimum four months period is taken to be as an on-job training period for preparing for the exam. Apart from the General Securities Exam, certain states in United States may also require you to take an additional exam for Uniform Securities Agents State Law Examination.
These two examinations prepare you for getting into the stock market and understand things like terminology, trading, legal aspects, etc. After you pass the exam, you are considered as a trainee. You need to get trained further and take classes and courses for another two years to further enhance your skills and understanding of the stock market. If you wish to stay ahead in the trade, then even after you obtain your license, you need to keep on updating yourself with the latest industry trends and market changes. This would make you the most successful stock broker in the market.
It takes more than a simple stock broker license to become the best and reputable in the industry. You should necessarily possess the business acumen to stand out. You should have strong analytical skills, sharp memory and ability to interpret situations and circumstances. Moreover, it is not necessary that you need to essentially become a trader at the stock market after obtaining the license. You can also become business analyst, stock accountant, stock market analyst, etc. All you need to do is to find the best job for yourself that suits your personality. If you do not want to become a full service stock broker, you can also start your own online business and become a discount stock broker. There are many people who need stock brokers who can buy and sell stocks based on their instructions.
There are numerous opportunities in the stock market after obtaining a stock broker license. All you need to do is to find the best job and climb the success of ladder that suits your personality the most.
- To obtain a stockbroker license, the applicant has to contact the Capital Markets Authority offices.
- The applicant has to make sure he or she has all the required documents that are required for this process to be successful and they can be found under the “Required Documents” section of this page or in the Application form and the Stockbrokers Checklist.
- Payment of appropriate fees should be made and that can be found under the “Fees” section of this page or in the Capital Markets Authority’s CMA Service Delivery Charter.
- On completion of this process, Capital Markets Authority will notify the applicant on any outstanding issues 14 working days after lodging an application and if there are no issues, the Authority will issue to the applicant a license within 25 working days.
- Application form
- Memorandum and articles of association
- Certificate of incorporation
- Business plan complying with the requirements of regulation 15 (1) (d) (stockbroker & dealer) of the Capital Markets Authority (Licensing Requirements) (General) Regulations.
- A statement of the un-audited accounts for the period of accounting year ending not earlier than six months prior to the date of application and audited annual accounts for the preceding two years (in the case of application of licence), management accounts upto the 30th November and audited annual accounts for the preceding year (in the case of renewal of licence)
- A declaration by the directors as to whether after due enquiry by them in relation to the interval between the date to which the last accounts have been made and a date not earlier than fourteen days before the date of the application
- the business of the company has, in their opinion, been satisfactorily maintained
- there have, in their opinion, arisen any circumstances adversely affecting the companys trading or value of its assets
- there are any contingent liabilities by reason of any guarantees given by the company or any of its subsidiaries
- there are, since the last annual accounts, any changes in published reserves or any unusual factors affecting the profit of the company or any of its subsidiaries.
- A copy of the bank guarantee to be lodged with the securities exchange or the central depository (where applicable).
- A declaration by persons authorized as prescribed to accompany the application form
Office Locations & Contacts
- Capital Markets Authority
Embankment Plaza, 3rd Floor
Longonot Road, off Kilimanjaro Avenue, Upperhill
P.O Box 74800 – 00200
Tel: +254- 20- 2264000/ 2264900 / 2221910/ 2221869/ 2226225
Cell: +254 722 207767
Fax: +254- 20-342825
Location: View Map
No person is allowed to carry on or hold himself out as carrying on business as a stockbroker unless he is approved as such by the Capital Markets Authority.
An application fee of Kshs. 2,500
License fee is KShs. 100,000
The licence granted shall remain valid unless suspended or revoked by the Authority.
The Authority may suspend or revoke a license, for such period or until the occurrence of such event as the Authority may specify if a licensed person
- goes into liquidation or an order is issued for the winding up of the licensed person;
- carries out any activity outside the scope of the licensed or approved activities;
- has a receiver or a manager appointed on all or a substantial part of the property of the company;
- ceases to carry on the licensed business for a period of more than thirty days unless it has obtained the approval of the Authority to do so;
- any of its directors or key employees has not, in the opinion of the Authority, performed their duties honestly and fairly;
- has contravened or failed to comply with any condition applicable in respect of the license;
- fails to comply with a direction of the Authority;
- fails to provide the Authority with such information as it may require;
- provides false or misleading information;
- for any other reason, is no longer fit and proper person to hold a license; or
- is in breach of any other provision under the Capital Markets Act.
Documents to Use
Within 25 working days upon meeting all the requirements.
An application for a licence or for the renewal of a licence should be made to the Authority in the prescribed form and shall be accompanied by the prescribed fee and in the case of an application for the renewal of a licence, may be made within three months but not later than one month prior to the expiry of the licence
The Authority may require an applicant to supply such further information as it considers necessary in relation to the application.
A licence is only be granted if the applicant meets and continues to meet such minimum financial and other requirements as may be prescribed by the Authority.
The Authority may grant a licence to such conditions or restrictions as it thinks fit and the Authority may, at any time by written notice to a licence holder, vary any condition or restriction or impose further conditions or restrictions.
The Authority will not refuse to grant a licence without first giving the applicant or holder of a licence an opportunity of being heard.
- Name of company
- Registered office
- Date of incorporation
- Location, address and telephone number of principal office
- Location, address and telephone number of branch offices
- Details of capital structure
- Particulars of other directorship(s) of the directors and secretary.
- Particulars of shares held by directors or secretary in other companies
- Business references
- Profile of the chief executive and key employees in the applicant company
- List the office facilities of the applicant
- State the exact nature of the activity to be carried on which obliges the applicant to apply for a licence from the Capital Markets Authority.
Need for the Document
A Stockbroker is a person who carries on the business of buying or selling of securities as an agent for investors in return for a commission. Stock Broker License
Information which might help
The checklists contained in this website reflect a summary of application requirements for various categories of applications that can be made with the Authority for approval to operate as a market intermediary, approved institution or issuer of securities within the Kenyan capital market.
It is important to note that:
1. The checklists are derived from the statutory requirements as set out in the relevant Regulations issued under the Capital Markets Act and are intended only as a simplified guide. Applicants are advised to read and understand the statutory requirements detailed in the relevant Regulations. The Regulations are the only conclusive statement on application requirements and can be accessed in the Regulations section of this Capital Markets Authority’s website.
2. The Authority reserves the right to request for any additional information that may be deemed necessary during the course of review of an application.
CMA Service Delivery Charter
The Capital Markets (Licensing Requirements) (General) Regulations 2002
The Capital Markets Act – Amended 2016
Application Processing Times and Procedures