Regulation 24 of the Nairobi International Financial Centre (NIFC) Regulations, 2021, outlines the disciplinary powers vested in the Authority to address contraventions by certified firms or individuals.
This article explores the sanctions and measures available to the Authority for ensuring compliance within the NIFC.
Disciplinary Powers and Sanctions
Scope of Authority’s Powers
The Authority possesses a range of disciplinary powers when it deems that a certified firm or individual has contravened any law, regulation, rule, or guideline administered by the Authority within the NIFC.
Sanctions for Contravention
(a) Monetary Fines: The Authority may impose fines not exceeding twenty thousand shillings for contraventions, serving as a financial deterrent for non-compliance.
(b) Censure: Certified firms may face censure from the Authority, signaling an official rebuke for the contravention.
(c) Restitution or Compensation: The Authority can direct a certified firm to effect restitution or compensate affected parties within specified timelines and terms.
(d) Accounting for Profits: Certified firms may be directed to account for profits or unjust enrichment resulting from the contravention.
(e) Cease and Desist Orders: The Authority can direct certified firms to cease and desist from activities linked to the contravention.
(f) Remedial Directives: Certified firms may receive directives to undertake specific actions or remedies to address the contravention or related matters.
Comprehensive Powers
Regulation 24 emphasizes that the Authority’s disciplinary powers do not preclude the exercise of other powers available under different legislation. This ensures a comprehensive approach to regulatory enforcement.
Implications for Certified Firms
Financial Accountability
Certified firms must recognize the financial implications of potential fines and the responsibility to account for profits or unjust enrichment.
Reputational Considerations
Censure by the Authority can have reputational consequences, emphasizing the importance of upholding ethical and regulatory standards.
Prompt Compliance
Certified firms are obligated to promptly comply with directives, cease and desist orders, or any other remedial actions stipulated by the Authority.
Conclusion
Regulation 24 reinforces the Authority’s commitment to maintaining regulatory integrity within the NIFC. Certified firms and individuals must adhere to established laws and guidelines to avoid disciplinary actions that could have financial, reputational, and operational implications. The overarching goal is to foster a compliant and trustworthy financial environment in the Nairobi International Financial Centre.
