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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

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  • COB A6.5 Holding or Arranging Custody with Third Party Agents

    • COB A6.5.1

      (1) Before an Authorised FirmG holds a Safe Custody InvestmentG with a Third Party AgentG , it must undertake an assessment of that Third Party AgentG and have concluded on reasonable grounds that the Third Party AgentG is suitable to hold those Safe Custody InvestmentsG .
      (2) An Authorised FirmG must have systems and controls in place to ensure that the Third Party AgentG remains suitable.
      (3) When assessing the suitability of the Third Party AgentG , the Authorised FirmG must ensure that the Third Party AgentG will provide protections equivalent to the protections conferred in this appendix.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

    • COB A6.5.1A

      (1) Before an Authorised FirmG arranges custody with a non-DIFC custodian authorised and supervised by a Financial Services RegulatorG , it must undertake an assessment of that custodian and have concluded, on reasonable grounds, that it is suitable to hold the Safe Custody InvestmentsG .
      (2) When assessing the suitability of a non-DIFC custodian, the Authorised FirmG must ensure that the non-DIFC custodian will provide protections equivalent to the protections conferred in this appendix.
      Derived from DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

    • COB A6.5.2

      An Authorised FirmG must be able to demonstrate to the DFSA's satisfaction the grounds upon which the Authorised FirmG considers the Third Party AgentG or a non-DIFC custodian to be suitable to hold Safe Custody InvestmentsG .

      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

      • COB A6.5.2 Guidance

        When assessing the suitability of a Third Party AgentG , an Authorised FirmG should have regard to:

        a. its credit rating;
        b. its capital and financial resources in relation to the amount of Safe Custody InvestmentsG held;
        c. the insolvency regime of the jurisdiction in which it is located;
        d. its arrangements for holding the InvestmentsG ;
        e. its regulatory status, expertise, reputation and history;
        f. its GroupG structure;
        g. its use of agents and service providers; and
        h. any other activities of the agent.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]