Template:Nutshell cass 6.4.1

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.

6.4.1(3) express prior consent of a retail client under this rule means the retail client’s signature (or equivalent).