In the quest to establish itself as a global financial hub, the Nairobi International Financial Centre (NIFC) places a strong emphasis on maintaining high standards of governance, financial capability, and compliance.
This article explores the stringent conditions for certification outlined in regulation 7 of the NIFC Regulations, 2021, and the criteria the Authority considers in assessing the fitness and propriety of applicants.
Conditions for Certification
According to regulation 7(1), an applicant must continually demonstrate to the satisfaction of the Authority that:
Fit and Proper
They are fit and proper individuals, ensuring that those leading and managing the entity possess the necessary integrity, competence, and ethical standards.
Adequate Resources
They have adequate resources, including financial resources, to sustain and grow their operations within the NIFC.
Compliance Arrangements
They have robust compliance arrangements, including policies and procedures, to ensure adherence to all applicable requirements and regulatory standards.
Alignment with Legislation and Strategic Priorities
Their proposed business activities align with Centre legislation and the strategic priorities of the Centre, emphasizing a commitment to the overall objectives of the NIFC.
Cancellation or Withdrawal of Certification
Regulation 7(2) grants the Authority the power to cancel or withdraw certification if a certified firm no longer meets the specified conditions under paragraph (1). This underscores the dynamic nature of the financial landscape and the need for continuous adherence to regulatory standards.
Fit and Proper Assessment Criteria
Regulation 8 provides insight into the evaluation criteria the Authority considers when assessing whether a person is fit and proper for certification purposes:
Fitness and Propriety of Governing Body
The fitness and propriety of the members of the applicant’s governing body, ensuring that leadership possesses the necessary qualities for responsible financial management.
Suitability of Controllers
The suitability of the controllers of the applicant, recognizing the impact that controllers may have on the entity’s ability to comply with regulatory requirements.
Impact of Controllers on Compliance
The potential impact a controller might have on the applicant’s ability to comply with applicable requirements.
Connection with Other Entities
The applicant’s connection with any person or membership of any group.
Relevance to Qualified Activities
Consideration of the qualified activities concerned and their alignment with the overall objectives of the NIFC.
Risk Assessment
An evaluation of the overall activities of the person and any associated risks that those activities pose to the objectives of the Centre and the Authority.
Integrity and Reputation
An examination of any matter which may harm or may have harmed the integrity or reputation of the Centre or the Authority.
Standing with Regulatory Bodies:
The applicant’s standing with any relevant regulatory body, its disciplinary record, and the risk posed to the Centre by the applicant’s activities.
Other Relevant Matters:
Consideration of any other relevant matters that may impact the applicant’s fitness and propriety.
Conclusion
The stringent conditions and evaluation criteria outlined in regulations 7 and 8 of the NIFC Regulations, 2021, reflect the Centre’s commitment to maintaining the highest standards in the financial industry. By ensuring that certified entities are fit and proper, adequately resourced, and in compliance with regulatory requirements, the NIFC aims to build a robust and reputable financial ecosystem.
As entities navigate the certification process, a keen understanding of these conditions and criteria becomes essential for success within the dynamic and globally competitive landscape of the Nairobi International Financial Centre.
