Home   Browse contents   View updates   Search  
     Quick search
Go
   

Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Archive
Rulebook Modules
Conduct of Business Module (COB) [VER34/01-20]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • COB A6.4 Client Accounts in relation to Client Investments

    • COB A6.4.1

      An Authorised FirmG which Provides CustodyG or holds or controls Client InvestmentsG must register or record all Safe Custody InvestmentsG in the legal title of:

      (a) a Client AccountG ; or
      (b) the Authorised FirmG where, due to the nature of the law or market practice, it is not feasible to do otherwise.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A6.4.2

      A Client AccountG in relation to Client InvestmentsG is an account which:

      (a) is held with a Third Party AgentG or by an Authorised FirmG which is authorised under its LicenceG to Provide CustodyG ;
      (b) is established to hold Client AssetsG ;
      (c) when held by a Third Party AgentG , is maintained in the name of;
      (i) if a Domestic FirmG , the Authorised FirmG ; or
      (ii) if not a Domestic FirmG , a Nominee CompanyG controlled by the Authorised FirmG ; and
      (d) includes the words 'Client Account' in its title.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A6.4.3

      (1) An Authorised FirmG must maintain a master list of all Client AccountsG .
      (2) The master list must detail:
      (a) the name of the account;
      (b) the account number;
      (c) the location of the account;
      (d) whether the account is currently open or closed; and
      (e) the date of opening or closure.
      (3) The details of the master list must be documented and maintained for a minimum period of six years following the closure of an account.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB A6.4.3 Guidance

        1. An Authorised FirmG may record, register or hold a Client'sG InvestmentG in a Client AccountG solely for that ClientG . Alternatively, an Authorised FirmG may choose to pool that Client'sG InvestmentG in a Client AccountG containing InvestmentsG of more than one ClientG .
        2. The purpose of recording, registering or holding InvestmentsG in a Client AccountG is to ensure that InvestmentsG belonging to ClientsG are readily identifiable from InvestmentsG belonging to the Authorised FirmG such that, following a Distribution EventG , any subsequent distribution of InvestmentsG may be made in proportion to each Client'sG valid claim over those InvestmentsG .
        3. Following a Distribution EventG , a ClientG may not have a valid claim over InvestmentsG registered, recorded or held in a Client AccountG if that Client AccountG was not established to register, record or hold InvestmentsG for that ClientG or a pool of ClientsG of which that ClientG was a part.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A6.4.4

      An Authorised FirmG must not use a Client'sG Safe Custody InvestmentG for its own purpose or that of another PersonG without that Client'sG prior written permission.

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A6.4.5

      An Authorised FirmG which intends to use a Client'sG Safe Custody InvestmentsG for its own purpose or that of another PersonG , must have systems and controls in place to ensure that:

      (a) it obtains that Client'sG prior written permission;
      (b) adequate records are maintained to protect Safe Custody InvestmentsG which are applied as collateral or used for stock lending activities;
      (c) the equivalent assets are returned to the Client AccountG of the ClientG ; and
      (d) the ClientG is not disadvantaged by the use of his Safe Custody InvestmentsG .
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]