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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Authorised Market Institutions (AMI) [VER18/02-17]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
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  • AMI 5.10.2

    An Authorised Market InstitutionG must ensure that the safe custody arrangements, at a minimum, provide for:

    (a) the segregation of assets belonging to every MemberG and other participant on its facilities from the assets belonging to the Authorised Market InstitutionG and the other MembersG and participants on its facilities;
    (b) the prompt access by the Authorised Market InstitutionG to the assets held under the safe custody arrangements;
    (c) the use or transfer of asset belonging to the MembersG and other participants on its facilities to be made only in accordance with the instructions of the relevant owners of those assets or in accordance with the terms of the agreement referred to in Rule 5.10.1(b) and any applicable legislation;
    (d) the reconciliation at appropriate intervals and frequency between the assets and accounts held under the safe custody arrangements; and
    (e) accurate records relating to the assets held under the safe custody arrangements to be kept, including:
    (i) the identity of the legal and beneficial owners of the relevant assets, and where appropriate, any PersonsG who have charges over, or other interests in, those assets;
    (ii) records of any additions, reductions and transfers in each individual account of assets; and
    (iii) the identity of the assets owned by (or where appropriate on behalf of) different PersonsG , including, where appropriate, the assets owned by MembersG and other participants on its facilities.
    Derived from RM118/2013 [VER15/07-13]

    • AMI 5.10.2 Guidance

      In assessing whether an Authorised Market InstitutionG 's safe custody arrangements meet the requirements in Rule 5.10.2, the DFSAG would particularly look at:

      a. the frequency with which statements of the holdings are provided to the MembersG and other participants on its facilities whose assets are held under the safe custody arrangements;
      b. the records of the assets held and the identity of the beneficial and legal owners and any other persons with rights over such assets, and whether the Authorised Market InstitutionG maintains a register of charges over Investments traded or cleared on its facility;
      c. the records of any instructions given in relation to those assets;
      d. the records of the carrying out of those instructions;
      e. the records of any movements in those assets (or any corporate actions or other events in relation to those assets); and
      f. how the Authorised Market InstitutionG reconciles its records of assets held with the records of any custodian or sub-custodian used to hold those assets, and with the record of beneficial or legal ownership of those assets.
      Derived from RM118/2013 [VER15/07-13]