Entire Section

  • COB A5.6 COB A5.6 Appointment of a Third Party Agent

    • COB A5.6.1

      (1) An Authorised Firm may only pay, or permit to be paid, Client Money to a Third 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 the Third Party Agent is suitable to hold that Client Money in a Client Account.
      (2) When assessing the suitability of the Third Party Agent, the Authorised Firm must ensure that the Third Party Agent will provide protections equivalent to the protections conferred by this appendix.
      (3) An Authorised Firm must have systems and controls in place to ensure that the Third 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 the Authorised Firm considers the Third Party Agent to be suitable to hold that Client 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, an Authorised Firm should have regard to:

        a. its credit rating;
        b. its capital and financial resources in relation to the amount of Client Money held;
        c. the insolvency regime of the jurisdiction in which it is located;
        d. its regulatory status and history;
        e. its Group structure; and
        f. its use of agents and service providers.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]