Joining ICIFA as a CFA Charterholder in Kenya

Many senior investment professionals in Kenya hold the CFA charter rather than the local Certified Investment and Financial Analyst (CIFA) qualification. When the Investment and Financial Analysts Act (Cap. 542) applies to their work, they need to know whether the charter is enough to join the Institute of Certified Investment and Financial Analysts (ICIFA), what else ICIFA asks for, and how the charter interacts with the Capital Markets Authority’s (CMA) separate certification rules. This article sets out the position.

Why registration matters

Section 20(1) of the Act makes it an offence to practise as a certified investment and financial analyst without being registered and holding a practising certificate or annual licence. Section 20(1A) goes further for senior roles: a Chief Investment Officer or head of an investment function in a firm investing public funds, or a firm in the practice of investment and financial analysis, must be registered and hold both a practising certificate and an annual licence. Our article on when ICIFA registration is needed explains who the Act reaches.

The statutory routes to registration

Section 16(1) of the Act sets out who qualifies to be registered. The two main routes are:

• passing the final CIFA examination set by the Kenya Accountants and Secretaries National Examinations Board (KASNEB); or
• holding a qualification that the ICIFA Council has approved. Under section 16(2), the Council may approve qualifications it considers sufficient by notice in the Gazette, in consultation with KASNEB, and may withdraw that approval in the same way.

Under section 16(3), the Council may also require an applicant to satisfy the Registration Committee that they have adequate knowledge of Kenyan law, including tax and financial markets law, adequate experience in investment and financial analysis, and acceptable conduct and character.

What ICIFA asks of CFA charterholders

ICIFA’s published membership requirements accept a certified copy of a “CIFA/CFA Certificate” for both Full and Associate membership. On ICIFA’s own published requirements, a CFA charterholder can therefore apply to join without first sitting the CIFA examinations. We have not located the Gazette notice under section 16(2) on which this rests, so anyone relying on it for a regulated role should ask ICIFA to confirm the position in writing.

The application for Full membership, made through ICIFA’s online portal, includes:

• the online membership application form;
• a fit and proper form, sworn before a Commissioner for Oaths;
• a certified copy of the CIFA or CFA certificate;
• a CV;
• an employer reference letter; and
• certified copies of other academic certificates.

Section 17 sets out grounds of disqualification, including a conviction for fraud or dishonesty, being an undischarged bankrupt, failing to meet the requirements of Chapter Six of the Constitution, and sitting and failing the annual ethics and integrity test administered by the Institute.

Membership is not a practising certificate

Joining ICIFA does not by itself authorise practice. A member who needs to practise applies separately for a practising certificate under section 22 of the Act. ICIFA’s published checklist for a practising certificate requires, among other things, that the applicant:

• is a Full Member or Fellow in good standing;
• has at least four years’ relevant experience, confirmed in letters from firms recognised by the Institute that describe the nature of the work;
• is up to date with continuing professional development and subscriptions;
• provides an employer reference and two referees, one of whom is an ICIFA member; and
• has no disciplinary history or pending case with the Institute.

A certificate holder who practises as a firm also needs an annual licence under section 24, which runs to 30 June and must be renewed each year. Our guide to ICIFA practising certificates and annual licences covers both.

The CMA certification rules are separate

Staff of CMA-licensed intermediaries who deal with clients must also meet the CMA’s market certification requirements, which are set under regulation 19(3) of the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations, 2011. The CFA charter helps here too, but only partly. CMA Circular No. 10/2016 lists the CFA, the FRM and the ICIFA qualification as exempt from Stage One of certification, but holders must still pass Stage Two, the Regulations and Market Practice (Kenya) module. Certified staff then need 35 hours of continuing professional development a year. Our article on CMA certification and CPD explains the full regime.

Practical steps

1. Decide whether your role needs ICIFA registration, a practising certificate, an annual licence, or all three.
2. Ask ICIFA to confirm in writing that your CFA charter is accepted for the membership class you need.
3. Gather certified copies of your charter and other certificates, and complete the sworn fit and proper form.
4. If you will practise, collect the experience letters and referee letters for the practising certificate early.
5. If you work for a CMA licensee, book the Stage Two module and plan your annual CPD.

Frequently asked questions

This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.