Being registered with the Institute of Certified Investment and Financial Analysts (ICIFA) is not the same as being allowed to practise. The Investment and Financial Analysts Act (Cap. 542) sets up three separate layers: registration as a member, a practising certificate, and an annual licence. Each has its own conditions, and each can lapse independently. This article explains how the three fit together, how long each lasts, and what happens when one of them ends.
Layer one: registration
Registration is the entry point. An application goes to the Registration Committee under section 14. Under section 16, a person qualifies if they have passed the final certified investment and financial analysts examination set by the Kenya Accountants and Secretaries National Examinations Board (KASNEB), or hold a qualification the ICIFA Council has approved by Gazette notice. The Council may also ask the applicant to show adequate knowledge of Kenyan law, including tax and financial markets law, adequate experience, and acceptable conduct and character.
Section 17 lists the grounds of disqualification. They include a conviction for an offence involving fraud or dishonesty, being an undischarged bankrupt, not meeting the requirements of Chapter Six of the Constitution, and sitting and failing the annual ethics and integrity test administered by the Institute. A person is also disqualified for any period the Disciplinary Committee has set under section 29.
Registration on its own does not authorise practice. Our article on when ICIFA registration is needed to give investment advice explains the practising requirement in section 20(1) and what counts as practice under section 21.
Layer two: the practising certificate
A registered person who wants to practise applies to the Registration Committee for a practising certificate under section 22, on the prescribed form and with the prescribed fee. Under section 23(1), the Committee issues the certificate if it is satisfied that the applicant:
- is registered;
- has received instruction of the prescribed nature and length from an investment analyst who holds a practising certificate; and
- meets any other prescribed requirements.
If the Committee is not satisfied, it must refuse the application.
Once issued, a practising certificate stays in force until one of the events in section 23 ends it. It ceases to be in force if the holder stops being registered, while it is suspended following disciplinary proceedings, or if the holder surrenders it to the Institute. A certificate that lapses because registration ended does not revive if the person later registers afresh, but it does revive if the original registration is restored.
Returning a certificate is a legal duty
Section 25 provides that a practising certificate or annual licence remains the property of the Institute. Where a certificate ceases to be in force because the holder is no longer registered, section 23(7) requires the holder to deliver it to the Institute within fourteen days. Failing to do so without reasonable excuse is an offence under section 23(8), punishable by a fine of up to KES 100,000 for every month or part of a month. Firms that lose a registered analyst should make sure the certificate is returned, not left on file.
Layer three: the annual licence
Section 24(1) provides that where the holder of a practising certificate intends to practise as a firm, whether as a sole practitioner or in a partnership, they must apply to the Registration Committee for an annual practising licence, giving the details of the firm the Committee requires. Under section 24(2), the licence is issued if the applicant holds a practising certificate and meets any other prescribed requirements.
The licence is short-lived by design. Under section 24(3), it is valid from the date of issue to 30 June of the year of issue and must then be renewed. A licence issued in May therefore lasts only weeks. Renewal dates should sit in the firm’s compliance calendar alongside other annual filings.
Some roles need both documents, not one or the other. Section 20(1) allows practice on a practising certificate or an annual licence. But sections 20(1A) to (1C) require a person who heads the investment function of certain firms, or who verifies investment returns or certifies investments for them, to hold a practising certificate and an annual licence. Our article on heading an investment function under section 20(1A) covers those roles.
The register
Under section 18, the Secretary to the Registration Committee keeps a register recording approved applicants, the issue and lapse of practising certificates, cancellations and restorations of registration, and details of firms engaged in investment and financial analysis practice, including their proprietors. The register may be inspected at reasonable hours. Anyone appointing an analyst, or relying on a firm’s claim that its people are certified, can check the register rather than taking it on trust.
Discipline and appeals
A registered member is subject to the Disciplinary Committee. Under section 29, the sanctions range from a reprimand to costs of up to KES 500,000, a fine of up to KES 1 million, training, suspension of the practising certificate, and cancellation of registration for a set period or for life. Under section 30, a person aggrieved by a determination may appeal to the High Court within sixty days of being notified. Under section 30(3), a determination has effect even though an appeal has been lodged, so a suspended analyst cannot keep practising simply by appealing.
How We Can Help
Clay & Associates Advocates advises investment firms, fund managers and individual analysts on registration, practising certificates, annual licences and disciplinary proceedings under the Investment and Financial Analysts Act, and on how ICIFA requirements interact with an investment adviser licence from the Capital Markets Authority. Contact our Regulatory & Compliance practice.
Sources: Investment and Financial Analysts Act (Cap. 542), sections 14, 16 to 18, 20 and 22 to 30.
Frequently asked questions
How long is an ICIFA annual licence valid?
From the date of issue to 30 June of the year of issue, after which it must be renewed (section 24(3)).
Does a practising certificate expire every year?
The Act does not give it a fixed expiry date. It stays in force until the holder stops being registered, it is suspended, or it is surrendered (section 23).
What happens if I do not return my practising certificate?
If the certificate lapsed because your registration ended, you must deliver it to the Institute within fourteen days. Failing to do so without reasonable excuse is an offence carrying a fine of up to KES 100,000 per month (section 23(7) and (8)).
Can I check whether an analyst is registered?
Yes. The register kept under section 18 may be inspected at reasonable hours.
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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.
