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COBS 16.4 Statements of client designated investments or client money

COBS 16.4.1R

  1. (1)

    A firm that holds client designated investments or client money for a client must send that client at least once a year a statement in a durable medium of those designated investments or that client money unless such a statement has been provided in a periodic statement.

  2. (2)

    A credit institution need not send a statement in respect of deposits held by it.

  3. (3)

    This rule does not apply in relation to a firm holding client designated investments or client money under a personal pension scheme or a stakeholder pension scheme where doing so is not MiFID or equivalent third country business.

  4. (4)

    2A CTF account provider holding client designated investments or client money under a CTF where doing so is not MiFID or equivalent third country business must provide a statement but need not do so more frequently than required by Regulation 10 of the CTF Regulations.

[Note: article 43(1) of the MiFID implementing Directive]

COBS 16.4.2R

A firm must include in a statement of client assets referred to under this section the following information:

  1. (1)

    details of all the designated investments or client money held by the firm for the client at the end of the period covered by the statement;

  2. (2)

    the extent to which any client designated investments or client money have been the subject of securities financing transactions; and

  3. (3)

    the extent of any benefit that has accrued to the client by virtue of participation in any securities financing transactions, and the basis on which that benefit has accrued.

[Note: article 43(2) of the MiFID implementing Directive]

COBS 16.4.3R

In cases where the portfolio of a client includes the proceeds of one or more unsettled transactions, the information in a statement provided under this section may be based either on the trade date or the settlement date, provided that the same basis is applied consistently to all such information in the statement.

[Note: article 43(2) of the MiFID implementing Directive]

COBS 16.4.4R

A firm which holds designated investments or client money and is managing investments for a client may include the statement under this section in the periodic statement it provides to that client.

[Note: article 43(3) of the MiFID implementing Directive]

COBS 16.4.5G

1In reporting to a client in accordance with this section, a firm should consider whether to provide details of any assets loaned or charged including:

  1. (1)

    which investments (if any) were at the end of the relevant period loaned to any third party and which investments (if any) were at that date charged to secure borrowings made on behalf of the portfolio; and

  2. (2)

    the aggregate of any interest payments made and income received during the period in respect of loans or borrowings made during that period

COBS 16.4.6G

3Firms subject to either or both the custody chapter and the client money chapter are reminded of the reporting obligations to clients in CASS 9.2 (Prime broker’s daily report to clients) and CASS 9.5 (Reporting to clients on request).