ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
23. Conduct of stockbrokers
Edition: 2023-10-06 · In force
23. Conduct of stockbrokers
(1)A stockbroker shall—(a)execute an order only where the client has made sufficient arrangements for funds or securities with the stockbroker;(b)only accept written orders and shall ensure that the client is not only capable of honouring the order before acting on the order, but has made arrangements with the stockbroker for fulfilment of its obligations arising from such order;(c)execute clients’ orders in the chronological sequence of orders received and which have been so recorded in accordance with these Regulations and shall give priority to orders of clients over orders of any shareholder or employee of the stockbroker or related dealer subsidiary, whether directly or indirectly;(d)maintain a daily record of orders received from clients showing the name of each client, the specific order and time the order was given, and execute the same in order of receipt;(e)exercise due diligence and care at all times so as not to misinform or misdirect clients;(f)while accepting an order from a client, inform the client of all constituent parts of an order prior to executing the order and get the client to give a written declaration to confirm the same;(g)provide factual and accurate information to clients’ through newsletters and advertisements;(h)not recommend to a client the purchase, sale or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client’s investment objectives, financial situation and needs, and any other information known or acquired by the stockbroker after reasonable examination of the client’s financial records.(2)An “order” for the purpose of this regulation, shall constitute written instructions by a client to a stockbroker as to the security name, quantity, price or price limits and duration or validity of instructions.