CMA – Capital Markets University Challenge

Capital Markets University Challenge

The Capital Markets Authority is the Government Regulator charged with licensing and regulating the capital markets in Kenya. It also approves public offers and listings of securities traded at the Nairobi Stock Exchange. The recently launched Capital Markets University Challenge is a Financial Literacy Competition for university undergraduate students.

As part of its strategy of empowering the youth through financial literacy, the Capital Markets Authority (CMA) has launched the Capital Markets University Challenge 2018. The inter-varsity competition primarily seeks to promote capital market knowledge and will take place from 25 September to 31 December 2018.

The Challenge will see 6,015 university students drawn from 37 participating local universities compete for the grand prize. The grand prize includes a Kshs150,000 portfolio of listed securities of their choice. Additionally, the three overall winners will participate in a fully-paid educational trip to a competitive Securities Exchange and a capital markets regulator in a country within the African continent for a period of 3 days. The university that produces the grand prize winner will also receive capital market-related text books worth Kshs 75,000 for its library.

‘The Capital Markets University Challenge 2018 is one of several initiatives designed to advance the Authority’s strategic priority of enhancing awareness and delivery of capital markets education among the youth as outlined in the recently launched CMA Strategic Plan 2018-2023.’ CMA Chief Executive, Mr Paul Muthaura said. He added that it will also support economic transformation as envisaged in the 10-year Capital Market Master Plan, 2014-2023.

The ‘Challenge’ is a timely response to findings of Authority’s recent studies on Low Uptake of Capital Markets Products and the Capital Markets Investor Behavioural and Situational Analysis respectively. ‘It will demystify the sustainable long-term nature of capital market investments in the face of competition from other investment and quick-return instruments which are redirecting the savings of the youth.’ Mr. Njoroge Kamunyu, Manager Investor Education and Public Awareness noted’

The ‘Challenge’ is anticipated to achieve stronger and more measurable results in improving uptake of capital markets products by the youth. The competition which leverages technology will take place in five stages. The ‘Challenge’ comes ahead of the World Investor Week 2018, taking place 1-7 October 2018, which seeks to promote financial literacy and capability globally. The Authority conducted similar competitions in 2008, 2014 and 2015 respectively.

Background Information on the Capital Markets Authority

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact Capital Markets Authority Head of Corporate Communications, Antony Mwangi on amwangi@cma.or.ke.

Structure of the Capital Markets University Challenge

The challenge will comprise five stages which will be staggered over time through various delivery mechanisms for maximum impact and to allow for effective participation.

Stage One: (Online Examination) – Elimination Stage

  • Leverage technology through scheduled online multiple choice examinations where no participants will be able to repeat or reenter to take an exam;
  • Only the top 100 winners from each university as identified by the system will proceed to Stage Two.

Stage Two: (Online Examination) – Scavenger Hunt Stage

  • Online multiple choice questions will require one to actually go through CMA website and Resource Centre Portal to locate specific information within a specified timeframe;
  • The objective of this stage is to select the top 1o students with the highest scores from each university to proceed to the next level.

Stage Three: (University Presentation Stage)

  • Top ten student from each participating university will make public presentation to fellow students and judges from CMA and selected university faculty members/lecturers;
  • The topics will be chosen by the student and approved by CMA;
  • The objective of this stage is to have the top 2 students from each university to compete in the Semi Finals.

Stage Four: (Semi – final stage)

  • The two short-listed students from each participating university will be invited to the Authority Conference Room to present and respond to structured questions from a panel of judges comprising of CMA staff members and other stakeholders;
  • The output of this stage is for the top 12 students overall to proceed to the Grand Finale.

Stage Five: Grand Finale

  • The top 12 students overall who will make a 20 minute presentation to invited public and university students from all participating universities, CMA staff and stakeholders at a Hotel in Nairobi CBD;
  • A cocktail to celebrate the winners will also be included as part of the program in the evening.

Rewards for Winners in the Capital Markets University Challenge

Grand Winner:

Ksh. 150,000 to buy a portfolio listed at the NSE, a visit to the Securities Exchange Commissions and a 3 day visit to an African Security Exchange Commission and an added bonus for the winning university that will receive books, materials and CMA literature worth Ksh. 75, 000. The winner will also be awarded with a certificate of participation.

1st Runner Up:

Ksh. 100,000 to buy a portfolio listed at the NSE, a visit to the Securities Exchange Commissions and a 3 day visit to an African Security Exchange Commission and certificate of participation.

2nd Runner Up:

Ksh. 50,000 to buy a portfolio listed at the NSE, a visit to the Securities Exchange Commissions and a 3 day visit to an African Security Exchange Commission and certificate of participation.

Participants 4 -12:

Ksh. 5000 to buy a portfolio listed at the NSE and certificates of participation.

Notes on the Capital Markets University Challenge

  • All participants will get certificates of participation
  • All institutions interested in participating in the Capital Markets University Challenge should send an email detailing the same to iepa@cma.or.ke

How to Register for the Capital Markets University Challenge

What can shares worth Kshs. 150,000 do for your life? How about a trip to a foreign country? How about rewarding your university with books worth kshs.75, 000?And what about being a guru in investing in the Capital Markets? This is what is in stake for the winner of the Capital Markets University Challenge 2018. This might be your chance to make proud memories. To register click here.

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