ADVOKS GLOBAL · KENYA
The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
29. Segregation of clients’ funds
Edition: 2022-12-31 · In force
29. Segregation of clients’ funds
(1)A market intermediary that receives or holds clients’ funds shall open one or more client bank accounts.(2)A market intermediary shall segregate its client bank accounts from any account holding funds belonging to the market intermediary.(3)A market intermediary shall deposit into a client bank account all funds received on behalf of or from a client, upon receipt.(4)A market intermediary shall keep records of—(a)all the amounts it has deposited into a client bank account held by the market intermediary, specifying the person on whose behalf the amounts are held and the dates on which they were deposited into the account;(b)all withdrawals from a client bank account, the dates of the withdrawals, and the names of the persons on whose behalf the withdrawals were made; and(c)any other particulars as may be prescribed by the Authority.(5)A market intermediary shall on a daily basis reconcile its records showing the amounts held on behalf of each client in the client bank account and the aggregate of clients’ money held in the client account or being held by third parties on behalf of clients.(6)Where there is more than one client account, the market intermediary shall reconcile each client account separately as well as the aggregate position on all clients’ accounts.(7)The officer who is responsible for authorising payments into and out of the client accounts shall not carry out the reconciliation.(8)A market intermediary shall obtain and maintain, in its records, written acknowledgement from the bank confirming that the clients’ funds deposited with the bank are held in trust for the clients and are not available to offset any obligation of the market intermediary.