Related provisions for CASS 6.2.10
1 - 10 of 10 items.
2The regulated activity of safeguarding and administering investments covers both the safeguarding and administration of assets (without arranging) andarranging safeguarding and administration of assets,5 when those assets are either safe custody investments or custody assets. A safe custody investment is, in summary, a designated investment which a firm receives or holds on behalf of a client. Custody assets include designated investments, and any other assets that the firm holds
(1) Subject to (2) and CASS 6.1.12B R and with the written agreement of the relevant client, a9firm need not treat this chapter as applying in respect of a delivery versus payment transaction through a commercial settlement system if:9929(a) in respect of a client's purchase, the firm intends for the asset in question to be due to the client within one business day following the client's fulfilment of its payment obligation to the firm;9 or9(b) in respect of a client's sale, the
(1) 1A firm may deposit
safe custody assets2
held by it on behalf of its clients into an account or accounts opened with a third party, but only if it exercises all due skill, care and diligence in the selection, appointment and periodic review of the third party and of the arrangements for the holding and safekeeping of those safe custody assets.222(1A) A firm which arranges the registration of a safe custody investment through a third party must exercise all due skill, care
In discharging its obligations under this section, a firm should also consider, together with any other relevant matters:(1) once a
safe custody asset2
has been lodged by the firm with the third party, the third party's performance of its services to the firm;2(2) the arrangements that the third party has in place for holding and safeguarding the safe custody asset;22(3) current industry standard reports, for example Financial Reporting and Auditing Group (FRAG) 21 report or
(1) A firm must only deposit
safe custody assets2
with a third party in a jurisdiction which specifically regulates and supervises the safekeeping of
safe custody assets2
for the account of another person with a third party who is subject to such regulation.22(2) A firm must not deposit
safe custody assets2
held on behalf of a client with a third party in a country that is not an EEA State (third country) and which does not regulate the holding and safekeeping of
safe custody
6A firm should consider carefully the terms of any agreement entered into with a third party under CASS 6.3.4A R. The following terms are examples of the issues that should be addressed in these agreements (where relevant):(1) that the title of the account in the third party's books and records indicates that any safe custody asset credited to it does not belong to the firm;(2) that the third party will hold or record a safe custody asset belonging to the firm'sclient separately
1A firm must, when holding
safe custody assets2
belonging to clients, make adequate arrangements so as to safeguard clients' ownership rights, especially in the event of the firm's insolvency, and to prevent the use of
safe custody assets2
belonging to a client on the firm's own account except with the client's express consent.[Note: article 13(7) of MiFID]22
1A firm that holds custody assets or client money must:(1) provide the information in COBS 6.1.7 R for any custody assets the firm may hold for a client, including any custody assets which are not designated investments; and(2) provide the information in COBS 6.1.7 R and in (1) to each of its clients.
(1) 1A firm must not enter into arrangements for securities financing transactions in respect of
safe custody assets2
held by it on behalf of a client or otherwise use such
safe custody assets2
for its own account or the account of another client of the firm, unless:22(a) the client has given express prior consent to the use of the
safe custody assets2
on specified terms; and2(b) the use of that client'ssafe custody assets2
is restricted to the specified terms to which the
(1) 1A firm must make available to each of its clients to whom it provides prime brokerage services a statement in a durable medium:(a) showing the value at the close of each business day of the items in (3); and(b) detailing any other matters which that firm considers are necessary to ensure that a client has up-to-date and accurate information about the amount of client money and the value of safe custody assets held by that firm for it.(2) The statement must be made available