CMA Money Manager Licence: Capital and Compliance Requirements

Online forex money managers occupy a distinct licence category under Kenya’s capital markets regulations, separate from both dealing and non-dealing forex brokers. Firms that manage client forex trading activity on a discretionary basis, rather than simply executing client-directed trades, need this specific CMA money manager licence from the Capital Markets Authority (CMA). The requirements are lighter on capital than a broker licence but carry their own governance and documentation obligations that are easy to underestimate.

What a Money Manager Licence Covers

Under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, a money manager is licensed to manage client forex trading activity, distinct from the execution function performed by a broker. A money manager cannot operate independently of the licensed broker infrastructure: the CMA’s checklist requires evidence of an agreement with an online foreign exchange broker already licensed by the Authority before a money manager application is considered complete. The licence is therefore a second layer sitting on top of the brokered market, not a standalone route into forex trading. It tends to suit asset managers and advisory firms that want to offer discretionary forex trading as a service without building the brokerage infrastructure a dealing or non-dealing licence requires.

Capital Requirements

The Regulations (Legal Notice 226 of 2017, as amended by Legal Notice 160 of 2023) set the following minimum thresholds for a money manager:

• Minimum paid-up capital of Kshs. 10,000,000, which must not be impaired.
• Liquid capital maintained at all times at the higher of Kshs. 5,000,000 or 8% of total liabilities.
• An application fee of Kshs. 2,500 under the Second Schedule, although the First Schedule separately refers to Kshs. 10,000. This is a drafting inconsistency within the consolidated text, not a superseded figure, so confirm the operative amount with the CMA before paying.
• An annual fee of Kshs. 100,000 under the Second Schedule once licensed.

These figures are lower than for a non-dealing broker, which needs Kshs. 30,000,000 in paid-up capital. A money manager does not hold client funds in the same way an executing broker does, but the lower capital bar is offset by a demanding governance and personnel checklist. The documentation burden is, if anything, comparable to that of a broker application.

Documentation and Policy Requirements

The Regulations, together with the CMA’s corporate governance rules for market intermediaries, set out the documentation package. It is specific to forex broker and money manager licensing and is separate from the Capital Markets (Licensing Requirements) (General) Regulations, 2025 (Legal Notice 197 of 2025). Applicants should expect to provide:

• A completed application form, certificate of incorporation, and memorandum and articles of association for a Kenyan company limited by shares.
• An executed agreement with a CMA-licensed online foreign exchange broker.
• Written policies covering client on-boarding, investor risk assessment, company-wide risk management, anti-money laundering and know-your-client checks, product sensitisation and client appropriateness, and dispute resolution for client complaints.
• Recent unaudited accounts and audited accounts, or an auditor’s certificate for a newly established entity.
• A Chief Executive who is fit and proper under section 24A of the Capital Markets Act, has at least five years’ experience in dealing in foreign exchange, foreign exchange futures or futures contracts, and belongs to a professional body.

Governance Structure

The board and personnel requirements are demanding and mirror those for forex brokers: a properly constituted board with independent, non-executive representation, an audit committee, a qualified company secretary, and an accredited compliance officer who may also serve as the anti-money laundering reporting officer. Key finance and audit personnel must hold recognised professional qualifications, and shareholders, directors and key personnel must provide declarations and clearance certificates. Because the exact composition rules sit in the CMA’s governance rules and checklist, applicants should map their board and personnel against the current checklist before filing.

Ongoing Compliance and Enforcement

Licensing is the starting point, not the end point. A money manager must maintain its minimum paid-up and liquid capital continuously and keep its broker agreement current, since the licence depends on that relationship. Regulation 15 imposes continuing obligations, including periodic certified reports to the CMA on complaints, reconciliations, funds under management, management accounts and capital adequacy.

The CMA may suspend a licence under regulation 10 on grounds such as breach of licence conditions, false or incomplete reporting, non-cooperation with an inspection, financial deterioration, non-payment of fees, or failure to use the licence. Regulation 11 governs revocation, and regulation 12 provides for automatic revocation only on court-declared insolvency, voluntary surrender or a court-ordered winding up, not simply for inactivity. Because the money manager function is tied to its broker, a lapse or dispute on the broker side can create compliance exposure even where the money manager has done nothing wrong, which is worth building into any ongoing risk review.

Foreign-Regulated Applicants

Where the applicant is a subsidiary or branch of a money manager already regulated elsewhere, the CMA requires confirmation from the foreign regulator that the entity is licensed and in good standing, together with a no-objection to Kenyan operations. This is in addition to, not instead of, the full local documentation package.

How This Fits the Wider CMA Framework

The money manager category sits alongside dealing and non-dealing forex brokers within the CMA’s online forex regime, and none of the three licences substitutes for another. See our guide to non-dealing forex broker licensing, our overview of Capital Markets Authority licensing in Kenya, and CBK forex bureau licensing (a distinct, CBK-regulated category).

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.