COB A5.13 COB A5.13 Client Money Distribution Rules
This section is referred to as the
Client Money Distribution Rulesand to the extent that these Rules are inconsistent with part 5.52 of the DIFC Insolvency Regulations, and the DIFC Preferential Creditor Regulations, these Rules will prevail.
COB A5.13.2 COB A5.13.2
Distribution Event, the Authorised Firmmust distribute Moneyin the following order of priorities:(a) firstly, in relation to Client Moneyheld in a Client Accounton behalf of Segregated Clients, claims relating to that Moneymust be paid to each Segregated Clientin full or, where insufficient funds are held in a Client Account, proportionately, in accordance with each Segregated Client'svalid claim over that Money;(b) secondly, where the amount of Client Moneyin a Client Accountis insufficient to satisfy the claims of Segregated Clientsin respect of that Money, or not being immediately available to satisfy such claims, all other Moneyheld by the Authorised Firmmust be used to satisfy any outstanding amounts remaining payable to Segregated Clientsbut not satisfied from the application of (a) above;(c) thirdly, upon resolution of claims in relation to Segregated Clients, any Moneyremaining with the Authorised Firmmust be paid to each Clientin full or, where insufficient funds are held by the Authorised Firm, proportionately, in accordance with each Client'svalid claim over that Money; and(d) fourthly, upon satisfaction of all claims in (a), (b) and (c) above, in the event of:(i) the appointment of a liquidator, receiver or administrator, or trustee in bankruptcy over the Authorised Firm, payment must be made accordance with the Insolvency Law 2019; or(ii) all other Distribution Events, payment must be made in accordance with the direction of the DFSA.
COB A5.13.2 Guidance
Segregated Clientwould not have a valid claim over Client Moneyheld in a Client Accountif that Client Accountwas not established to hold Client Moneyfor that Client.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]