Regulatory Alerts2023-02-14
Regulatory Regulation No. 12: Controls and Procedures for Segregation of Accounts at Financial Brokerage Companies
The Securities Commission issued Regulatory Regulation No. 12 (2022) mandating financial brokerage companies to strictly segregate their operational accounts from clients' trust accounts at designated banks. The regulation prohibits the commingling of client funds, the use of trust balances for corporate credit facilities or inter-client debt settlement, and requires weekly commission transfers and daily balance reconciliations. It further compels brokerages to maintain detailed investor sub-accounts, report all bank account details to the Commission and the Market, and conduct post-settlement period reconciliations to ensure full compliance with financial transparency standards.
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