Entire Section

  • COB A5.4 COB A5.4 Client Accounts

    • COB A5.4.1

      A Client Account in relation to Client Money is an account which:

      (a) is held with a Third Party Agent;
      (b) is established to hold Client Assets;
      (c) is maintained in the name of;
      (i) if a Domestic Firm, the Authorised Firm; or
      (ii) if a non-Domestic Firm, a Nominee Company controlled by the Authorised 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) An Authorised Firm must maintain a master list of all Client 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. An Authorised Firm may hold or control Client Money belonging to a Segregated Client in a Client Account solely for that Client. Alternatively, an Authorised Firm may choose to pool that Client Money in a Client Account containing Client Money of more than one Segregated Client.
        2. The purpose of controlling or holding Client Money in a Client Account is to ensure that Money belonging to Segregated Clients is readily identifiable from Money belonging to the Authorised Firm such that, following a Distribution Event, Segregated Clients will rank highest in line in terms of any subsequent distribution of Client Money in proportion to each Client's valid claim over that Money.
        3. Following a Distribution Event, a Segregated Client may not have a valid claim over Client Money held or controlled in a Client Account if that Client Account was not established to hold or control Client Money for that Client or a pool of Clients of which that Client 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]