Compliance Report on Customers’ Funds & Assets covers the extent of compliance by licensed persons supervised by Capital Markets Authority with the provisions of Rule Book VII (Customers’ Funds & 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 (according to Capital Markets Authority Circular No. (6) of 2016 concerning the licensed person’s auditor’s annual report on compliance with the provisions of Book VII of the Executive Regulations).
Pursuant to the provisions and rules of customers’ funds and assets, a licensed person is required to take measures, which ensure that customers’ 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 customer’s account; ensure that the customer is the beneficiary of all transactions related to their funds; and use best efforts to realize and promote its customers’ interests.
With respect to the independent auditor, such report should be prepared by the same auditor appointed to audit the financial statements of the licensed person.
(Reference: Executive Regulations – Book VII: Customers’ Funds & Assets, Article (2.5) of Chapter 2 (General Provisions))
Added value to business entities from Compliance Report on Customers’ Funds & Assets
- Comply with laws, regulations, resolutions and instructions issued by Capital Markets Authority;
- Enhance business entity’s reputation and increase all stakeholders’ confidence;
- Protect the customers’ funds and assets and promote their interests and investments; and
- Contribute to optimizing regulatory compliance with respect to securities business.
Services offered by Baker Tilly
Compliance Report on Customers’ Funds & Assets
Prepare annual report by the licensed person’s auditor on compliance by the licensed person with the rules set forth in Book VII (Customers’ Funds & Assets) of the Executive Regulations of Law No. 7 of 2010. The required report shall be submitted to Capital Markets Authority not later than 1 March of every year provided that such report will be presented in Arabic language.
(Reference: Executive Regulations – Book VII: Customers’ Funds & Assets, Article (2.5) of Chapter 2 “General Provisions”)
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- Audit of Financial Statements
- Agreed-Upon Procedures
- Internal Control Report (ICR)
- Performance Assessment of Internal Audit Function Report
- AML-CFT Legislation Compliance Report