ADVOKS GLOBAL · KENYA
The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
31. Segregation of other client property
Edition: 2022-12-31 · In force
31. Segregation of other client property
(1)All securities and other property held or received by a market intermediary on behalf of a client in connection with its regulated activity shall be segregated and accounted for separately.(2)A market intermediary shall keep such books and accounts as are necessary to—(a)show all its dealings with a client’s securities and other property held or received by it on behalf of a client; and(b)distinguish securities and other property it holds or has received on behalf of each client from its own securities and property and other securities and property held or received by the market intermediary.(3)A market intermediary shall on monthly basis reconcile the records of assets held by the market intermediary on behalf of clients, both individually and in aggregate, and compare the reconciliation with the evidence of the title to the assets controlled by the market intermediary, as immobilized securities or those held in certificated form (if any).(4)Where a market intermediary has appointed a custodian to hold the clients’ assets, the market intermediary shall maintain records of all assets held by the custodian and reconcile the records on monthly basis, with the records of the market intermediary of the assets held on behalf of its clients both individually and collectively.(5)A market intermediary shall keep safely all evidence of title to client assets.(6)A market intermediary shall not dispose of client assets unless the client has instructed it, in writing.(7)A market intermediary shall ensure that its internal systems and controls do not permit its officers to dispose of, pledge, lend or otherwise deal with client assets except in accordance with these Regulations.