The clients’ funds and assets held with the Capital Market Authority licensed persons are subject to the provisions and rules set forth in Module Seven “Clients’ Funds and Assets” of the Executive Regulations of Law No. 7 of 2010 on the Establishment of Capital Markets Authority and Regulation of Securities Business, as amended.
A licensed person is required to take measures, that ensure that clients’ funds and assets are maintained, safeguarded, and only used for the intended purposes for which they are allocated; maintain complete segregation between deals and orders executed for its own account and those executed for the client’s account; ensure that the client is the beneficiary of all transactions related to their funds; and use best efforts to realize and promote its clients’ interests.
Licensed persons shall engage an independent auditor on an annual basis to prepare the assurance report on compliance with the rules and provisions stated in Module 7. Such a report shall be submitted to the Capital Markets Authority.
