COB A5.8 COB A5.8 Payment of Client Money from Client Accounts
Authorised Firmmust have procedures for ensuring all withdrawals from a Client Accountare authorised.
Subject to COB Rule A5.8.3, a
Segregated Client's Client Moneymust remain in a Client Accountuntil it is:(a) due and payable to the Authorised Firm;(b) paid to the Clienton whose behalf the Client Moneyis held;(c) paid in accordance with a Clientinstruction on whose behalf the Client Moneyis held;(d) required to meet the payment obligations of the Clienton whose behalf the Client Moneyis held; or(e) paid out in circumstances that are otherwise authorised by the DFSA.
Money paid out by way of cheque or other payable order under COB Rule A5.8.2 must remain in a
Client Accountuntil the cheque or payable order is presented to the Client'sbank and cleared by the paying agent.
COB A5.8.4 COB A5.8.4
Authorised Firmmust not use Client Moneybelonging of one Clientto satisfy an obligation of another Client.
COB A5.8.4 Guidance
The effect of COB Rule A5.8.4 is that an
Authorised Firmwould be required to deposit its own Moneyinto a Client Accountto remedy a shortfall arising from a client debit balance.
Authorised Firmmust have a system for ensuring no off-setting or debit balances occur on Client Accounts.