COB A6.6 COB A6.6 Safe Custody Agreements with Third Party Agents
Authorised Firmpasses, or permits to be passed, Safe Custody Investmentsto a Third Party Agentit must have procured a written acknowledgement from the Third Party Agentstating:(a) that the title of the account sufficiently distinguishes that account from any account containing Investmentsbelonging to the Authorised Firm, and is in the form requested by the Authorised Firm;(b) that the Client Investmentwill only be credited and withdrawn in accordance with the instructions of the Authorised Firm;(c) that the Third Party Agentwill hold Client Investmentsseparately from assets belonging to the Third Party Agent;(d) the arrangements for recording and registering Client Investments, claiming and receiving dividends and other entitlements and interest and the giving and receiving of instructions;(e) that the Third Party Agentwill deliver a statement to the Authorised Firm(including the frequency of such statement), which details the Client Investmentsdeposited to the account;(f) that all Investmentsstanding to the credit of the account are held by the Authorised Firmas agent and that the Third Party Agentis not entitled to combine the account with any other account or to exercise any charge, mortgage, lien, right of set-off or counterclaim against Investmentsin that account in respect of any sum owed to it on any other account of the Authorised Firm; and(g) the extent of liability of the Third Party Agentin the event of default.
COB A6.6.2(1) An
Authorised Firmmust maintain records of all Safe Custody Agreementsand any instructions given by the Authorised Firmto the Third Party Agentunder the terms of the agreement.(2) The records must be maintained for at least of six years.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]