ADVOKS GLOBAL · KENYA
The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
13. Client agreement required
Edition: 2022-12-31 · In force
13. Client agreement required
(1)A market intermediary shall not provide the service in respect of a regulated activity unless it has entered a written agreement with the client and the service is to be provided in accordance with the agreement.(2)The client agreement shall set out the basis on which the market intermediary’s services are provided, including—(a)essential information about the market intermediary, including its name, address and contact information;(b)the services to be provided;(c)the fees to be charged or the way the fees will be calculated;(d)the nature or basis of commissions to be received by the market intermediary from third parties in relation to the services provided to the client;(e)the obligations of the client, including the manner of giving instructions;(f)the rights of the client, including—(i)the right to receive the title for any securities purchased;(ii)the right to receive a statement of all fees and charges;(iii)the right to information on the remuneration received by the market intermediary from third parties for the services provided, in relation to the client;(iv)the right to ask for information on the experience, qualifications and disciplinary history of the market intermediary;(v)the right to receive interest on funds held by the market intermediary on the client’s behalf;(vi)the right to receive payment for securities sold within a specified period;(vii)the right to see the market intermediary’s conflict of interest policy;(viii)the right to complain and to have that complaint dealt with fairly and promptly;(g)the obligations of the market intermediary;(h)the arrangements made for securing the titles to and for the custody of securities bought including through the use of nominee accounts and the use of a custodian, where appropriate;(i)any conflicts of interest relating to the market intermediary;(j)any connections the market intermediary has with third parties that could affect the services being provided, including a requirement that the market intermediary deals through certain third parties or recommend certain investment products;(k)the fact that the market intermediary is regulated by the Authority; and(l)any other terms and conditions of the agreement, including the notice to be given in respect of any changes to it or its termination.(3)A market intermediary and a client shall abide by the terms of the agreement.(4)A market intermediary shall keep the signed written agreement and give the client a copy.