Whistleblowers eye windfall as CMA posts laws
By Noel.Wandera, June 7, 2022
\Whistleblowers who disclose malpractices by firms listed at the Capital Markets will now be able to get a reward of up to Sh5 million.
The move follows the gazettement of the Capital Markets (Whistleblower) Regulations, 2022 anchored in Section 18 of the Capital Markets Act which empowers the CMA to reward whistleblowers.
The new regulations outline how the rewards for such whistleblowers will be implemented. Under the new regulations, reportable misconduct includes: -capital markets fraud, failure to comply with legal and regulatory obligations and other offences prescribed in the Capital Markets Act and Regulations.
Investor protection “The Capital Markets (Whistleblower) Regulations, 2022 seek to promote investor protection and confidence in the capital markets by encouraging CMA licensees and listed companies to comply with the Capital Markets Act and Regulations.
It also promotes market integrity and accountability in the conduct of business by all market players’, CMA chief executive officer Wyckliffe Shamiah said.
Regulations stipulate that a whistleblower is any person who provides to the CMA either by himself or acting jointly with another person, new and timely information relating to misconduct or contravention of laws relating to securities leading to the recovery of penalties or illicit gains.
“Whistleblower reports made anonymously, or in-person should include substantial details and evidence of misconduct or contravention of laws that can assist the CMA with its investigations, leading to the recovery of illicit gains and penalties,” he added.