Entire Section

  • COB A5.8 COB A5.8 Payment of Client Money from Client Accounts

    • COB A5.8.1

      An Authorised Firm must have procedures for ensuring all withdrawals from a Client Account are authorised.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.8.2

      Subject to COB Rule A5.8.3, a Segregated Client's Client Money must remain in a Client Account until it is:

      (a) due and payable to the Authorised Firm;
      (b) paid to the Client on whose behalf the Client Money is held;
      (c) paid in accordance with a Client instruction on whose behalf the Client Money is held;
      (d) required to meet the payment obligations of the Client on whose behalf the Client Money is held; or
      (e) paid out in circumstances that are otherwise authorised by the DFSA.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.8.3

      Money paid out by way of cheque or other payable order under COB Rule A5.8.2 must remain in a Client Account until the cheque or payable order is presented to the Client's bank and cleared by the paying agent.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.8.4 COB A5.8.4

      An Authorised Firm must not use Client Money belonging of one Client to satisfy an obligation of another Client.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB A5.8.4 Guidance

        The effect of COB Rule A5.8.4 is that an Authorised Firm would be required to deposit its own Money into a Client Account to remedy a shortfall arising from a client debit balance.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A5.8.5

      An Authorised Firm must have a system for ensuring no off-setting or debit balances occur on Client Accounts.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]