Certificate representing certain securities - COBS Provision: Difference between revisions

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-{{a|cobs|{{cobssnap|Certificate representing certain securities}}}}
+{{a|cobs|{{cobssnap|Certificate representing certain securities}}}}So I am going to take this one really slowly,. because it's a proper [[Zodiac Mindwarp]]. The [[JC]] came to this to answer the question “Do the CASS 6 rules apply to certificated, physical [[share certificate]]s, which ''evidences'' ownership of the share in question but does not comprise it?”
+At first I thought the answer was “no”, then I thought it might be “yes”, and now I just don’t know. So let’s walk through this slowly.
+=====“a [[certificate]] or other [[instrument]]”...=====
+Is a [[share certificate]] a “certificate”? Well you’d think so — but what of this “or ''other'' [[instrument]]”? That implies not just any old certificate, but one that qualifies also as some kind of “instrument”. Otherwise you wouldn't need that modified “other”. To this old lag’s ears, “[[instrument]]” means some kind of [[financial instrument|''financial'' instrument]] being the thing “[[in rem]]”, in and of itself, as opposed to a piece of paper ''talking about'' a [[financial instrument]].
+But, safety first: let’s be cautious, and say our non-title conferring [[share certificate]] is in scope. Just in case.
+=====... which confers contractual or property rights (other than rights consisting of [[option]]s) (a) in respect of any share [...] ...=====
+The share certificate does not confer property rights. They is conferred by the register of shareholders. Does a [[share certificate]] of itself confer ''other'' contractual rights with respect to the [[shares]]? What could these rights be, if not options of some kind or another with regard to the share?
+=====... held by a person other than the person on whom the rights are conferred by the certificate or instrument... =====
+; and
+(b) the transfer of which may be effected without requiring the consent of that person;
+but excluding any certificate or other instrument which confers rights in respect of two or more investments issued by different persons or in respect of two or more different government and public securities issued by the same person.