Prime brokerage agreement disclosure annex: Difference between revisions

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{{a|cass|}}{{c|Prime brokerage}}The famous [[prime brokerage disclosure annex]] mandated by CASS {{cassprov|9.3}}. Note especially the second part, which refers explicitly to the [[CF10a]]’s personal responsibility for making sure everything is tickety-boo. Which will mean your local [[CF10a]] might be [[inclined]], almost imperceptibly, to obsess madly about your catalogue of [[prime brokerage disclosure annexe]]s at every waking moment (yours or {{sex|hers}}).
{{a|cass|}}{{c|Prime Brokerage}}The famous [[prime brokerage disclosure annex]] mandated by CASS {{cassprov|9.3}}. Note especially the second part, which refers explicitly to the [[CF10a]]’s personal responsibility for making sure everything is tickety-boo. Which will mean your local [[CF10a]] might be [[inclined]], almost imperceptibly, to obsess madly about your catalogue of [[prime brokerage disclosure annexe]]s at every waking moment (yours or {{sex|hers}}).


Strictly speaking, one only needs a [[PBDA]] if one is [[Reuse|reusing]] or (as our American friends like to say, “[[Rehypothecation|rehypothecating]]” [[client assets]]. If you don’t [[reuse]] custody assets — that is, you have no right to transfer them to your own account for your own nefarious purposes,<ref>not really nefarious, obviously</ref> you don’t need to provide your client with a [[PBDA]].
Strictly speaking, one only needs a [[PBDA]] if one is [[Reuse|reusing]] or (as our American friends like to say, “[[Rehypothecation|rehypothecating]]” [[client assets]]. If you don’t [[reuse]] custody assets — that is, you have no right to transfer them to your own account for your own nefarious purposes,<ref>not really nefarious, obviously</ref> you don’t need to provide your client with a [[PBDA]].

Revision as of 10:15, 16 August 2021

IMPORTANT: CASS changed quite a bit after MiFID II. This resource therefore may well be out of date, even if it was accurate once, which it might not have been. This is an article about the FCA’s custody and client money rules — client assets — and is fondly known by its chapter in the FCA SourcebookTemplate:Anatnavigation-cass
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The famous prime brokerage disclosure annex mandated by CASS 9.3. Note especially the second part, which refers explicitly to the CF10a’s personal responsibility for making sure everything is tickety-boo. Which will mean your local CF10a might be inclined, almost imperceptibly, to obsess madly about your catalogue of prime brokerage disclosure annexes at every waking moment (yours or hers).

Strictly speaking, one only needs a PBDA if one is reusing or (as our American friends like to say, “rehypothecating” client assets. If you don’t reuse custody assets — that is, you have no right to transfer them to your own account for your own nefarious purposes,[1] you don’t need to provide your client with a PBDA.

The rule, which was not significantly modified by MiFID II, you can see in original here: CASS Chapter 9

See also

References

  1. ↑ not really nefarious, obviously
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