Equiti Group continues to build its license portfolio amid a shifting regulatory environment in the European Union. The company has just announced that it acquired a brand new license from a little-known jurisdiction, Kenya. The step made by the globally-focused brokerage company represents a big step for the FX and CFDs industry in the country.
Equiti Group established a local subsidiary called EGM Securities Limited. The first online forex broker license in Kenya is issued under a new regulatory regime, which transferred the oversight of online foreign exchange brokerage services to Kenya’s Capital Markets Authority (CMA). This is the government regulator responsible for licensing and regulating the capital markets in Kenya.
Commenting on the news, the CEO of Equiti Group, Iskandar Najjar, said: “We are absolutely delighted to be awarded the first online forex broker license in Kenya after an intense application process and having met the strict license requirements.”
“Our license in Kenya supports Equiti Group’s vision to extend our global footprint to new markets and new regions by providing a fully-resourced office in highly-regulated global markets. We are excited to make our debut in Africa through Kenya, which is the most well-regulated, largest and most advanced economy in East Africa,” Najjar added.
FX Regulation in Kenya
The newly established subsidiary of Equiti Group in Kenya, EGM Securities Limited, will begin operations in May 2018. The launch of the brokerage represents a shift from traditional regulated products that involve stocks and shares in Kenya. After the official launch of the operations of the new subsidiary of the MENA-focused brokerage, local investors will be provided with margined FX and CFD (contracts for differences) trading.
The license enables Kenyans to trade FX online under strict regulatory controls. The operations of the company will be headquartered in the capital, Nairobi. Equiti will soon be announcing the name of the firm’s CEO, who will be based in the country. The company plans to employ a fully-resourced team of professionals to support its business in the region.
Equiti’s new license compliments the company’s license portfolio after earlier this year it announced that it had received one in Jordan.
The Managing Director of Equiti Group for the Middle East and Africa region, Mohamed Alahmad, said: “Online forex trading is relatively new to Kenya, so we are pleased to work with the regulator in Kenya to develop the local market.”