ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
45. Segregation of clients' funds
Edition: 2022-12-31 · In force
45. Segregation of clients' funds
(1)A commodity broker shall maintain strict segregation between its own funds and each individual client's funds without any Statement, terms and conditions to be furnished to prospective client.(2)A commodity broker shall establish a client group account with the designated settlement bank of the commodity exchange of which that commodity broker is a member.(3)A commodity broker shall undertake and complete reconciliation on a daily basis between—(a)the client group account maintained at the designated clearing house of a commodity exchange;(b)the client group account at the clearing house of a commodity exchange; and(c)individual clients' account maintained at the clearing house of a commodity exchange.(4)A commodity broker shall not accept cash from or pay cash to a client for a transaction under these Regulations.(5)A commodity broker shall maintain a record of transactions with the relevant banks including client's deposits and withdrawals from the client group account maintained with the commodity exchange designated clearing house.