COB A5.4 COB A5.4 Client Accounts
Client Accountin relation to Client Moneyis 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 Companycontrolled by the Authorised Firm; and(d) includes the words 'Client Account' in its title.
COB A5.4.2 COB A5.4.2(1) An
Authorised Firmmust 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 Guidance1. An
Authorised Firmmay hold or control Client Moneybelonging to a Segregated Clientin a Client Accountsolely for that Client. Alternatively, an Authorised Firmmay choose to pool that Client Moneyin a Client Accountcontaining Client Moneyof more than one Segregated Client.2. The purpose of controlling or holding Client Moneyin a Client Accountis to ensure that Moneybelonging to Segregated Clientsis readily identifiable from Moneybelonging to the Authorised Firmsuch that, following a Distribution Event, Segregated Clientswill rank highest in line in terms of any subsequent distribution of Client Moneyin proportion to each Client'svalid claim over that Money.3. Following a Distribution Event, a Segregated Clientmay not have a valid claim over Client Moneyheld or controlled in a Client Accountif that Client Accountwas not established to hold or control Client Moneyfor that Clientor a pool of Clientsof which that Clientwas a part.