The Capital Markets Authority Rules

14. Financial limits for brokers and dealers

Edition: 2022-12-31 · In force

(1)The licence of a broker or dealer shall be revoked if the broker's or dealer's—

(a)aggregate indebtedness exceeds one thousand and two hundred per cent of the broker's or dealer's net capital; or

(b)net capital falls below one hundred thousand shillings for two consecutive months.

(2)No broker or dealer shall—

(a)grant unsecured advances or loans to any of its directors or associates in excess of twenty thousand shillings; nor

(b)allow deficits in the account of a single client to exceed thirty per cent of its monthly net capital; nor

(c)allow its exposure to a single listed security to exceed three hundred per cent of the broker's or dealer's monthly net capital; nor

(d)allow the book value of the listed securities it carries on its own account to exceed one hundred and fifty per cent of its monthly net capital.