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 payClient Money into aClient Account does not, subject to COB Rule A5.5.2 and COB Rule A5.5.4, apply with respect to suchClient Money :(a) received in the form of cheque, or other payable order, until theAuthorised Firm , or aPerson or account controlled by theAuthorised Firm , is in receipt of the proceeds of that cheque;(b) temporarily held by anAuthorised Firm before forwarding to aPerson nominated by theClient ;(c) in connection with aDelivery Versus Payment Transaction where:(i) in respect of aClient purchase,Client Money from theClient will be due to theAuthorised Firm within one day upon the fulfilment of a delivery obligation; or(ii) in respect of aClient sale,Client Money will be due to theClient within one day following theClient's fulfilment of a delivery obligation; or(d) held in theClient's own name where theAuthorised Firm has a mandate to manage theMoney 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 payClient Money of the type described in COB Rule A5.5.1(b) or (c) into aClient Account where it has not fulfilled its delivery or payment obligation within three days of receipt of theMoney orInvestments unless in the case of the type ofClient Money referred to in COB Rule A5.5.1(c)(ii) it instead safeguardsClient Investments at least equal to the value of suchClient Money .Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]COB A5.5.3
(1) AnAuthorised 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 theClient for whom payment is to be credited; and(c) date when the cheque or payment order was presented to theAuthorised 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]