COB A5.6 COB A5.6 Appointment of a Third Party Agent
COB A5.6.1(1) An
Authorised Firmmay only pay, or permit to be paid, Client Moneyto a Third Party Agentin 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 Agentis suitable to hold that Client Moneyin a Client Account.(2) When assessing the suitability of the Third Party Agent, the Authorised Firmmust ensure that the Third Party Agentwill provide protections equivalent to the protections conferred by this appendix.(3) An Authorised Firmmust have systems and controls in place to ensure that the Third Party Agentremains suitable.
COB A5.6.2 COB A5.6.2
Authorised Firmmust be able to demonstrate to the DFSA's satisfaction the grounds upon which the Authorised Firmconsiders the Third Party Agentto be suitable to hold that Client Money.
COB A5.6.2 Guidance
When assessing the suitability of a
Third Party Agent, an Authorised Firmshould have regard to:a. its credit rating;b. its capital and financial resources in relation to the amount of Client Moneyheld;c. the insolvency regime of the jurisdiction in which it is located;d. its regulatory status and history;e. its Groupstructure; andf. its use of agents and service providers.