COB A5.5 COB A5.5 Exceptions to Holding Client Money in Client Accounts
COB A5.5.1(a) received in the form of cheque, or other payable order, until the
Authorised Firm, or a Personor account controlled by the Authorised Firm, is in receipt of the proceeds of that cheque;(b) temporarily held by an Authorised Firmbefore forwarding to a Personnominated by the Client;(c) in connection with a Delivery Versus Payment Transactionwhere:(i) in respect of a Clientpurchase, Client Moneyfrom the Clientwill be due to the Authorised Firmwithin one day upon the fulfilment of a delivery obligation; or(ii) in respect of a Clientsale, Client Moneywill be due to the Clientwithin one day following the Client'sfulfilment of a delivery obligation; or(d) held in the Client'sown name where the Authorised Firmhas a mandate to manage the Moneyon a discretionary basis.
Authorised Firmmust pay Client Moneyof the type described in COB Rule A5.5.1(b) or (c) into a Client Accountwhere it has not fulfilled its delivery or payment obligation within three days of receipt of the Moneyor Investmentsunless in the case of the type of Client Moneyreferred to in COB Rule A5.5.1(c)(ii) it instead safeguards Client Investmentsat 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 Firmmust 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 Clientfor 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]