African Alliance, an investment banking group has restructured its businesses in Kenya to align them with new regulatory requirements in the country, the firm’s management said on Wednesday.
According to a statement, African Alliance Kenya has merged its three business divisions including; investment banking, stockbroking and asset management.
The merger of the businesses follows the approval of the move by the Kenya regulatory authorities, namely Capital Markets Authority and the Nairobi Stock Exchange, for African Alliance Kenya Investment Bank Limited (AAKIB) to acquire the assets and liabilities of African Alliance Kenya Management Company Limited and African Alliance Kenya Securities Limited.
To this end, AAKIB was also licenced as an investment bank to offer advisory services, engage in the business of stockbroking, and operate collective investment schemes as fund managers.
It also comes on the back of new capital requirements instituted by the Kenyan CMA, which came into effect in January this year.
Mr Ewart Salins , the senior executive officer at African Alliance Stockbroking division said: “With this single license, all three functions of the business can be carried out, hence rendering the need for separate stockbroking and asset management licenses quite redundant.”