Entire Section

  • COB A6.7 COB A6.7 Client Disclosure

    • COB A6.7.1

      (1) Before an Authorised Firm Arranges Custody for a Client it must disclose to that Client, if applicable, that the Client's Safe Custody Investments may be held in a jurisdiction outside the DIFC and the market practices, insolvency and legal regime applicable in that jurisdiction may differ from the regime applicable in the DIFC.
      (2) Before an Authorised Firm Provides Custody for a Client it must disclose to the Client on whose behalf the Safe Custody Investments will be held:
      (a) a statement that the Client is subject to the protections conferred by the Safe Custody Provisions;
      (b) the arrangements for recording and registering Safe Custody Investments, claiming and receiving dividends and other entitlements and interest and the giving and receiving instructions relating to those Safe Custody Investments;
      (c) the obligations the Authorised Firm will have to the Client in relation to exercising rights on behalf of the Client;
      (d) the basis and any terms governing the way in which Safe Custody Investments will be held, including any rights which the Authorised Firm may have to realise Safe Custody Investments held on behalf of the Client in satisfaction of a default by the Client;
      (e) the method and frequency upon which the Authorised Firm will report to the Client in relation to his Safe Custody Investments;
      (f) if applicable, a statement that the Authorised Firm intends to mix Safe Custody Investments with those of other Clients;
      (g) if applicable, a statement that the Client's Safe Custody Investments may be held in a jurisdiction outside the DIFC and the market practices, insolvency and legal regime applicable in that jurisdiction may differ from the regime applicable in the DIFC;
      (h) if applicable, a statement that the Authorised Firm holds or intends to hold Safe Custody Investments in a Client Account with a Third Party Agent which is in the same Group as the Authorised Firm; and
      (i) the extent of the Authorised Firm's liability in the event of default by a Third Party Agent.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]