The Capital Markets (Online Foreign Exchange Trading) Regulations

23. Segregation of clients' funds

Edition: 2023-10-06 · In force

23. Segregation of clients' funds

(1)An online foreign exchange broker shall—

(a)maintain strict segregation between its own funds and every individual client's funds without any co-mingling between own funds and clients' funds;

(b)open a segregated clients' account with a bank licensed under the Banking Act; and

(c)ensure that all deposits and withdrawals by the clients are only made through the individual client's accounts established under paragraph (b).

(2)An online foreign exchange broker shall undertake daily reconciliations between the clients' account maintained at the designated bank and individual clients' account ledgers maintained by the broker or money manager.

(3)An online foreign exchange broker shall not accept cash from, or pay cash to, a client for any transaction under these Regulations.

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Source: Kenya Law