Entire Section
COB A5.4 COB A5.4 Client Accounts
COB A5.4.1
A
Client Account in relation toClient Money is an account which:(a) is held with aThird Party Agent ;(b) is established to holdClient Assets ;(c) is maintained in the name of;(i) if aDomestic Firm , theAuthorised Firm ; or(ii) if a non-DomesticFirm , aNominee Company controlled by theAuthorised Firm ; and(d) includes the words 'Client Account' in its title.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
[Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]COB A5.4.2 COB A5.4.2
(1) AnAuthorised Firm must maintain a master list of allClient Accounts .(2) The master list must detail:(a) the name of the account;(b) the account number;(c) the location of the account;(d) whether the account is currently open or closed; and(e) the date of opening or closure.(3) The details of the master list must be documented and maintained for at least six years following the closure of an account.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]COB 5.4.2 Guidance
1. AnAuthorised Firm may hold or controlClient Money belonging to aSegregated Client in aClient Account solely for thatClient . Alternatively, anAuthorised Firm may choose to pool thatClient Money in aClient Account containingClient Money of more than oneSegregated Client .2. The purpose of controlling or holdingClient Money in aClient Account is to ensure thatMoney belonging toSegregated Clients is readily identifiable fromMoney belonging to theAuthorised Firm such that, following aDistribution Event ,Segregated Clients will rank highest in line in terms of any subsequent distribution ofClient Money in proportion to eachClient's valid claim over thatMoney .3. Following aDistribution Event , aSegregated Client may not have a valid claim overClient Money held or controlled in aClient Account if thatClient Account was not established to hold or controlClient Money for thatClient or a pool ofClients of which thatClient was a part.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
[Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]