Template:Nutshell cass 6.4.1: Difference between revisions

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Revision as of 16:46, 31 January 2018

6.4.1

(1) General restriction on reuse: A firm may not use custody assets for securities financing transactions, or otherwise use those assets for its own account or any one else’s, unless:
(a) the client has given express prior consent to their use on specified terms; and
(b) the firm only uses them on those specified terms.
6.4.1(2) Omnibus accounts: A firm may not use custody assets for securities financing transactions that it holds on a client’s behalf in an omnibus account held by a third party, or otherwise use custody assets held in such an account for its own or any one else’s account unless, in addition to (1):
(a) each affected client in the omnibus account has given express prior consent as above; or
(b) the firm has in place systems to ensure that only assets belonging to those clients who have given express prior consent are used.
(3) express prior consent of a retail client under this rule means the retail client’s signature (or equivalent).