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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 A6.6 Safe Custody Agreements with Third Party Agents

    • COB A6.6.1

      Before an Authorised FirmG passes, or permits to be passed, Safe Custody InvestmentsG to a Third Party AgentG it must have procured a written acknowledgement from the Third Party AgentG stating:

      (a) that the title of the account sufficiently distinguishes that account from any account containing InvestmentsG belonging to the Authorised FirmG , and is in the form requested by the Authorised FirmG ;
      (b) that the Client InvestmentG will only be credited and withdrawn in accordance with the instructions of the Authorised FirmG ;
      (c) that the Third Party AgentG will hold Client InvestmentsG separately from assets belonging to the Third Party AgentG ;
      (d) the arrangements for recording and registering Client InvestmentsG , claiming and receiving dividends and other entitlements and interest and the giving and receiving of instructions;
      (e) that the Third Party AgentG will deliver a statement to the Authorised FirmG (including the frequency of such statement), which details the Client InvestmentsG deposited to the account;
      (f) that all InvestmentsG standing to the credit of the account are 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 InvestmentsG in that account in respect of any sum owed to it on any other account of the Authorised FirmG ; and
      (g) the extent of liability of the Third Party AgentG in the event of default.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER16/08-09]

    • COB A6.6.2

      (1) An Authorised FirmG must maintain records of all Safe Custody AgreementsG and any instructions given by the Authorised FirmG to the Third Party AgentG under the terms of the agreement.
      (2) The records must be maintained for at least of six years.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]