Home   Browse contents   View updates   Search  
     Quick search
Go
   

Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Conduct of Business Module (COB) [VER33/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • COB A5.7 Payment of Client Money to a Third Party Agent

    • COB A5.7.1

      (1) Subject to COB Rule A5.7.3, an Authorised FirmG may only pass, or permit to be passed, a Segregated Client'sG MoneyG to a Third Party AgentG if:
      (a) the Client MoneyG is to be used in respect of a TransactionG or series or TransactionsG for that ClientG ;
      (b) the Client MoneyG is to be used to meet an obligation of that ClientG ; or
      (c) the Third Party AgentG is a BankG or a Regulated Financial InstitutionG which is authorised to accept or take DepositsG .
      (2) In respect of (1)(a) and (b), an Authorised FirmG must not hold any excess Client MoneyG with the Third Party AgentG longer than necessary to effect a TransactionG or satisfy the Client'sG obligation.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A5.7.2

      When an Authorised FirmG opens a Client AccountG with a Third Party AgentG it must obtain, within a reasonable period, a written acknowledgement from the Third Party AgentG stating that:

      (a) all MoneyG standing to the credit of the account is held by the Authorised FirmG as agent and that the Third Party AgentG 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 MoneyG in that account in respect of any sum owed to it on any other account of the Authorised FirmG ; and
      (b) the title of the account sufficiently distinguishes that account from any account containing MoneyG that belongs to the Authorised FirmG , and is in the form requested by the Authorised FirmG .
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB A5.7.2 Guidance

        The DFSA would consider twenty days as being a reasonable period for an Authorised FirmG to receive a written acknowledgement from the Third Party AgentG .

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

    • COB A5.7.3

      If the Third Party AgentG does not provide the acknowledgement referred to in COB Rule A5.7.2 within a reasonable period, the Authorised FirmG must refrain from making further deposits of Client MoneyG with that Third Party AgentG and withdraw any Client MoneyG standing to the credit of that Client AccountG .

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