Was going through the business daily online version and I came across this;

http://www.businessdaily...2/-/yhoegf/-/index.html

Then there was this;

http://allafrica.com/stories/201201110366.html

http://www.businessdaily...8/-/gxv2g2/-/index.html

http://www.businessdaily.../-/talyg9z/-/index.html

All this and many more not mentioned have happened in one year and have brought to light the glaring loopholes that allow fraud to thrive in our capital market and CMA,s flat footedness every time fraud is executed...

Lets first start with the CSDC,what is its role as a custodian;From their website they are supposed to;

Be the quality provider of clearing and settlement services in the Kenya Capital Markets. In line with our mission, we offer securecentral custody and simplified, swift and safe transfer of investors' value.
Note;secure and safe transfer in the above statement mission,something that is starting to become questionable each and every day,if rogue traders can sell stocks of an individual without their knowledge just because the account has or is dormant something is definitely wrong with the structural make up of the CDSC,maybe its time they get some serious competition in the custodial services area,plus clearing and settlement...The most usual source of assessment by the investor is from their own (CDSCs) internal management information
and problem logs,which as usual isnt present for everyone to see,we only get to hear of this fraudulent activities via the media IMHO I dont think we would have even known or heard the problems going on at the CDSC...Let the Central Bank,CMA approve/license additional settlement venues so that the CSDC can reduce the workload they have to deal with...
My biggest issue with CMA is their response to regulatory failure...Other regulators in different jurisdictions have firmly dealt with regulatory failures that come their way be it;The pension mis-selling of the early 90s,BCCI 8B pound fraud in 91,Barings Bank crisis in 95,The rogue trades of Mr.Hamanaka of Sumitomo at the LME that brought a loss of 2B plus to Sumitomo and changed the London Metal Exchange trading rules and regulation...the list is endless...Regulators need to keep aware of potential types of failure and come up with a way of working on them and diffusing them,personally CMA is not doing much and am sure next month,next year another issue involving fraud will come to light...we cant wait till they come up with their proposed new structural framework and blue print in 11 months I think,to shore up on investor confidence act on rogue traders now,and crack the whip so hard no one should be tempted to engage in such fraud...Mervyn King one time governor of the Bank of England said "There should be a
sweeping increase in the powers of regulators, they should have a new remit of preventing a
build-up of risk in the financial system,he further said that the new role of regulators in
enforcing financial stability should be to ‘turn down the music when the dancing gets a little too wild" CMA wake up and do something...