Entire Section

  • COB A5.5 COB A5.5 Exceptions to Holding Client Money in Client Accounts

    • COB A5.5.1

      The requirement for an Authorised Firm to pay Client Money into a Client Account does not, subject to COB Rule A5.5.2 and COB Rule A5.5.4, apply with respect to such Client Money:

      (a) received in the form of cheque, or other payable order, until the Authorised Firm, or a Person or account controlled by the Authorised Firm, is in receipt of the proceeds of that cheque;
      (b) temporarily held by an Authorised Firm before forwarding to a Person nominated by the Client;
      (c) in connection with a Delivery Versus Payment Transaction where:
      (i) in respect of a Client purchase, Client Money from the Client will be due to the Authorised Firm within one day upon the fulfilment of a delivery obligation; or
      (ii) in respect of a Client sale, Client Money will be due to the Client within one day following the Client's fulfilment of a delivery obligation; or
      (d) held in the Client's own name where the Authorised Firm has a mandate to manage the Money on a discretionary basis.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM226/2018 (Made 6th June 2018). [VER30/08-18]
      [Added] DFSA RMI267/2020 (Made 26th February 2020). [VER36/04-20]

    • COB A5.5.2

      An Authorised Firm must pay Client Money of the type described in COB Rule A5.5.1(b) or (c) into a Client Account where it has not fulfilled its delivery or payment obligation within three days of receipt of the Money or Investments unless in the case of the type of Client Money referred to in COB Rule A5.5.1(c)(ii) it instead safeguards Client Investments at least equal to the value of such Client Money.

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

    • COB A5.5.3

      (1) An Authorised Firm must maintain adequate records of all cheques and payment orders received in accordance with COB Rule A5.5.1(a) including, in respect of each payment, the:
      (a) date of receipt;
      (b) name of the Client for whom payment is to be credited; and
      (c) date when the cheque or payment order was presented to the Authorised Firm's Third Party Agent.
      (2) The records must be kept for a minimum of six years.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.5.4

      The exceptions in COB Rule A5.5.1(b) to (d) do not apply to Client Money held for, or in connection with, Providing Money Services.

      Derived from DFSA RMI267/2020 (Made 26th February 2020). [VER36/04-20]