THURSDAY: 16 December 2021. Time Allowed: 3 hours.
Answer ALL questions. Marks allocated to each question are shown at the end of the question.
QUESTION ONE
1. Explain four functions of the Retirement Benefits Authority or a similar body in your country. (8 marks)
2. To prevent money laundering, a financial institution is obligated to verify customer identity.
With reference to the above statement:
Describe three documents that can legally identify an individual. (3 marks)
Explain two legal ways of identifying a body corporate. (2 marks)
3. Highlight seven securities exchange listing eligibility requirements to be satisfied by an issuer of fixed income securities before issuing the securities to the public. (7 marks)
(Total: 20 marks)
QUESTION TWO
1. With reference to Kenya Deposit Insurance Corporation (KDIC):
Outline five sources of KDIC funds. (5 marks)
Summarise seven objectives of the KDIC. (7 marks)
2. Discuss four advantages of raising capital through private offers over initial public offering. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. With reference to trading at the securities exchange, explain the term automated trading system (ATS). (2 marks)
2. Distinguish between “credit rating agencies” and “credit reference bureaus”. (4 marks)
3. Discuss four contents of the annual report submitted by a central depository to the Capital Markets Authority within three months after the end of its financial year. (8 marks)
4. Summarise six roles of the Capital Markets Authority in promoting good corporate governance practices in listed companies. (6 marks)
(Total: 20 marks)
QUESTION FOUR
1. Outline five International Organisation of Securities Commissions (TOSCO) principles relating to the regulator. (5 marks)
2. With reference to establishment of private universities, outline five contents of a charter granted by the president. (5 marks)
3. In relation to depositing of securities at the Central Depository, evaluate four regulatory requirements relating to the records of depositors. (8 marks)
4. Explain the term “cross border listing”. (2 marks)
(Total: 20 marks)
QUESTION FIVE
1. A constitution is a mandatory requirement when registering any religious organisation.
With reference to the above statement, state seven contents of a religious organisation’s constitution. (7 marks)
2. For one to establish and run insurance business in Kenya, one is required to fulfil certain requirements.
With reference to the above statement, outline eight insurer registration requirements to be met by the insurer as provided by the Insurance Regulatory Authority (IRA). (8 marks)
3. The Sacco Societies (non-deposit taking business) Regulations 2020 requires specified non deposit taking Sacco’s for example those whose total non-withdrawable deposit from members is equal to or exceeds Sh.100 million to apply to Sacco Societies Regulatory Authority (SASRA) for authorisation to conduct Sacco business. With reference to the above statement, state five documents required by SASRA while applying for authorisation.
(5 marks)
(Total: 20 marks)
