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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
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  • COB A5.13 Client Money Distribution Rules

    • COB A5.13.1

      This section is referred to as the Client Money Distribution RulesG and 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.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM144/2014 (Made 24th August 2014). [VER23/08-14]

    • COB A5.13.2

      Following a Distribution EventG , the Authorised FirmG must distribute MoneyG in the following order of priorities:

      (a) firstly, in relation to Client MoneyG held in a Client AccountG on behalf of Segregated ClientsG , claims relating to that MoneyG must be paid to each Segregated ClientG in full or, where insufficient funds are held in a Client AccountG , proportionately, in accordance with each Segregated Client'sG valid claim over that MoneyG ;
      (b) secondly, where the amount of Client MoneyG in a Client AccountG is insufficient to satisfy the claims of Segregated ClientsG in respect of that MoneyG , or not being immediately available to satisfy such claims, all other MoneyG held by the Authorised FirmG must be used to satisfy any outstanding amounts remaining payable to Segregated ClientsG but not satisfied from the application of (a) above;
      (c) thirdly, upon resolution of claims in relation to Segregated ClientsG , any MoneyG remaining with the Authorised FirmG must be paid to each ClientG in full or, where insufficient funds are held by the Authorised FirmG , proportionately, in accordance with each Client'sG valid claim over that MoneyG ; 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 FirmG , payment must be made accordance with the Insolvency Law 2009; or
      (ii) all other Distribution EventsG , payment must be made in accordance with the direction of the DFSA.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

      • COB A5.13.2 Guidance

        A Segregated ClientG would not have a valid claim over Client MoneyG held in a Client AccountG if that Client AccountG was not established to hold Client MoneyG for that ClientG .

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

    • COB A5.13.3

      Following a Distribution EventG , an Authorised FirmG must sell all CollateralG and use the proceeds of the sale to satisfy claims made in accordance with COB Rule A5.13.2

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