Entire Section

  • COB A5.3 COB A5.3 Payment of Client Money into Client Accounts

    • COB A5.3.1

      Where an Authorised Firm holds or controls Client Money it must ensure, except where otherwise provided in COB section A5.5 that the Client Money is paid into one or more Client Accounts within one day of receipt.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.3.2

      Subject to COB Rule A5.3.3, an Authorised Firm must not deposit its own Money into a Client Account.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.3.3

      (1) An Authorised Firm may deposit its own Money in a Client Account where:
      (a) it is a minimum sum required to open the account, or to keep it open;
      (b) the Money is received by way of mixed remittance provided the Authorised Firm transfers out that part of the payment which is not Client Money within one day of the day on which the Authorised Firm would normally expect the remittance to be cleared;
      (c) interest credited to the account exceeds the amount payable to Segregated Clients, provided that the Money is removed within twenty five days; or
      (d) it is to meet a shortfall in Client Money.
      (2) Where an Authorised Firm deposits any Money into a Client Account such Money is Client Money until such time as the Money is withdrawn from the Client Account in accordance with the Client Money Provisions.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A5.3.4

      An Authorised Firm must maintain systems and controls for identifying Money which must not be in a Client Account and for transferring it without delay.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.3.5 COB A5.3.5

      Where an Authorised Firm is aware that a Person may make a payment of Client Money to the Authorised Firm, it must take reasonable steps:

      (a) to ensure that such payment of Client Money is directed to a Client Account; and
      (b) to ensure that the Authorised Firm is notified by that Person of such payment as soon as reasonably practicable.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB A5.3.5 Guidance

        An Authorised Firm should have procedures for identifying Client Money received by the Authorised Firm, and for promptly recording the receipt of the Money either in the books of account or a register for later posting to the Client cash book and ledger accounts. The procedures should cover Client Money received by the Authorised Firm through the mail, electronically or via agents of the Authorised Firm or through any other means.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]