Entire Section

  • COB A6.6 COB A6.6 Safe Custody Agreements with Third Party Agents

    • COB A6.6.1

      Before an Authorised Firm passes, or permits to be passed, Safe Custody Investments to a Third Party Agent it must have procured a written acknowledgement from the Third Party Agent stating:

      (a) that the title of the account sufficiently distinguishes that account from any account containing Investments belonging to the Authorised Firm, and is in the form requested by the Authorised Firm;
      (b) that the Client Investment will only be credited and withdrawn in accordance with the instructions of the Authorised Firm;
      (c) that the Third Party Agent will hold Client Investments separately 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 Agent will deliver a statement to the Authorised Firm (including the frequency of such statement), which details the Client Investments deposited to the account;
      (f) that all Investments standing to the credit of the account are held by the Authorised Firm as agent and that the Third Party Agent is not entitled to combine the account with any other account or to exercise any charge, mortgage, lien, right of set-off or counterclaim against Investments in 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 Agent in the event of default.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A6.6.2

      (1) An Authorised Firm must maintain records of all Safe Custody Agreements and any instructions given by the Authorised Firm to the Third Party Agent under 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]