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COB A5.6 COB A5.6 Appointment of a Third Party Agent
COB A5.6.1
(1) AnAuthorised Firm may only pay, or permit to be paid,Client Money to aThird Party Agent in accordance with COB Rule A5.7.1 where it has undertaken a prior assessment of the suitability of that agent and concluded on reasonable grounds that theThird Party Agent is suitable to hold thatClient Money in aClient Account .(2) When assessing the suitability of theThird Party Agent , theAuthorised Firm must ensure that theThird Party Agent will provide protections equivalent to the protections conferred by this appendix.(3) AnAuthorised Firm must have systems and controls in place to ensure that theThird Party Agent remains suitable.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]COB A5.6.2 COB A5.6.2
An
Authorised Firm must be able to demonstrate to the DFSA's satisfaction the grounds upon which theAuthorised Firm considers theThird Party Agent to be suitable to hold thatClient Money .Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]COB A5.6.2 Guidance
When assessing the suitability of a
Third Party Agent , anAuthorised Firm should have regard to:a. its credit rating;b. its capital and financial resources in relation to the amount ofClient Money held;c. the insolvency regime of the jurisdiction in which it is located;d. its regulatory status and history;e. itsGroup structure; andf. its use of agents and service providers.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]