Template:CASS Section 6.3.1: Difference between revisions

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(1)  A {{fcaprov|firm}} may deposit {{fcaprov|safe custody assets}} held by it on behalf of its {{fcaprov|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 {{fcaprov|safe custody assets}}. <br>
{{Cass URL|6|3}}
(1A)  A firm which arranges the registration of a safe custody investment through a third party must exercise all due skill, care and diligence in the selection and appointment of the third party. <br>
(2) A firm must take the necessary steps to ensure that any client's safe custody assets deposited with a third party, in accordance with this rule are identifiable separately from the applicable assets belonging to the firm and from the applicable assets belonging to that third party, by means of differently titled accounts on the books of the third party or other equivalent measures that achieve the same level of protection. <br>
(3) When a firm makes the selection, appointment and conducts the periodic review referred to under this rule, it must take into account: <br>
:(a)  the expertise and market reputation of the third party; and <br>
:(b)  any legal requirements or market practices related to the holding of those1 safe custody assets1 that could adversely affect clients' rights. <br>
(4)  A firm must make a record of the grounds upon which it satisfies itself as to the appropriateness of its selection of a third party as required in this rule. The firm must make the record on the date it makes the selection and must keep it from the date of such selection until five years after the firm ceases to use the third party to hold1 safe custody assets belonging to clients.  <br>

Revision as of 14:03, 9 November 2017

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