NAIROBI, Dec 18 (Reuters) - Kenya’s Capital Markets Authority said on Tuesday it had granted a licence to Standard Investment Bank to engage in online foreign exchange trading business.
The bank is the second company in Kenya to receive an online forex trading licence after EGM Securities Limited was granted one in February this year.
In October, the regulator had warned Kenyans against online foreign exchange trading through unlicensed entities, saying they could risk losing their investments.
Paul Muthaura, CEO of the Capital Markets Authority, said at the time he had observed several individuals and entities carrying on or purporting to carry on the business of an online foreign exchange broker or a money manager without the relevant licence.
The regulator said Standard Investment Bank had been given a money manager licence that would allow it to chose and manage investments prudently for its online forex trading clients and develop appropriate investment strategy.
“The money manager will conduct financial analysis and monitor foreign exchange portfolio investments on behalf of its clients,” it said.
Reporting by Humphrey Malalo; Writing by Elias Biryabarema. Editing by Jane Merriman