ADVOKS GLOBAL · KENYA
The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
4. Know your client
Edition: 2022-12-31 · In force
4. Know your client
(1)A market intermediary shall seek sufficient information about the client and the client’s circumstances to ensure that the services provided are consistent with those circumstances.(2)Notwithstanding the generality of paragraph (1), a market intermediary—(a)shall, when recommending investments to a client or where it has discretion to act on behalf of a client, take and document reasonable steps to satisfy itself that the recommendation or discretionary action is suitable for the client, taking account of all the available alternatives;(b)shall not recommend, or where the market intermediary has discretion to act on behalf of a client, execute any sale or purchase that is unsuitable for the client;(c)shall not recommend, or where the market intermediary has discretion to act on behalf of a client, execute sales or purchases of a frequency that does not benefit the client regardless of the commission that the sales or purchases may produce; and(d)may execute an order of a client without satisfying itself as to its suitability only where the client agreement makes clear that the client is acting without the advice of the market intermediary.(3)A market intermediary shall take all reasonable steps to ensure that it does not give advice or effect a transaction, on behalf of a client, unless the advice or transaction is suitable for the client considering the facts disclosed by the client and any other relevant facts about the client that the market intermediary is or ought to reasonably be aware of.