ADVOKS GLOBAL · KENYA
The Capital Markets Authority Rules
19. Supervision of investment adviser's representatives
Edition: 2022-12-31 · In force
19. Supervision of investment adviser's representatives
(1)Every investment adviser's representative employed by an investment adviser shall be subject to the supervision of a supervisor designated by the investment adviser who may be the investment adviser in the case of a sole proprietor, or a partner, officer, office manager or any qualified investment adviser representative in the case of entities other than sole proprietorships.(2)As part of its responsibility under this rule, every investment adviser shall establish, maintain and enforce written procedures, a copy of which shall be kept in each business office, which shall set forth the procedures adopted by the investment adviser, which shall include but not be limited to the following duties—(a)the review and written approval by the designated supervisor of the opening of each new client account;(b)the frequent examination of all client accounts to detect and prevent irregularities or abuses;(c)the prompt review and written approval by a designated supervisor of all advisory transactions by investment adviser representatives and of all correspondence pertaining to the solicitation or execution of advisory transactions by investment adviser representatives; and(d)the prompt review and written approval of the handling of all client complaints.(3)Every investment adviser who has designated more than one supervisor shall designate from among its partner officers, or other qualified investment adviser representatives, a person or group of persons who shall—(a)supervise and periodically review the activities of the supervisors; and(b)periodically inspect each business office under his supervision to ensure that the written procedures are being enforced.