• COBS 14.2 COBS 14.2 Client Money and Relevant Money Rules

    • COBS 14.2.1

      All Money held or controlled on behalf of a Client in the course of, or in connection with, the carrying on of Investment Business in or from the Abu Dhabi Global Market is Client Money, except Money which is:

      (a) held by the Authorised Person acting as Banks as a deposit on its own books, provided the Authorised Person notifies the Client in writing that the Client Money is held by it as a Bank and not as Client Money;
      (b) due and payable by the Client to the Authorised Person;
      (c) in an account in the Client's name over which the Authorised Person has a mandate or similar authority and who is in compliance with these Rules;
      received in the form of a cheque, or other payable order, made payable to a third party other than a Person or account controlled by the Authorised Person, provided the cheque or other payable order is intended to be forwarded to the third party within one Business Day of receipt; or
      (e) Fund Property of a Fund.

    • COBS 14.2.1A

      All Money held or controlled by a Payment Service Provider on behalf of a Payment Service User in the course of, or in connection with, the carrying on of Payment Services in or from the Abu Dhabi Global Market is Relevant Money from the time of its receipt, except Money which is due and payable to the Authorised Person from the Payment Service User.

    • COBS 14.2.2 COBS 14.2.2

      [Deleted]

      • Guidance

        1. The exemption in Rule 14.2.1(a) does not apply to Money which is held in a Client Account with a third party i.e. not held in an account with the Authorised Person itself.
        2. Pursuant to Rule 14.2.1(b), examples of Money which is due and payable to an Authorised Person include Money which is:
        (i) paid by the way of brokerage, fees and other charges to the Authorised Person or where the Authorised Person is entitled to deduct such remuneration from the Client Money held or controlled;
        (ii) paid by the Authorised Person in relation to a Client purchase or in settlement of a margin payment in advance of receiving a payment from the Client; or
        (iii) owed by the Client to the Authorised Person in respect of unpaid purchases by or for the Client if delivery of Investments has been made to the Client or credited to his account.
        3. The Fund Rules contain specific provisions relating to the handing of Fund Property and also provisions relating to a Fund Administrator holding or controlling monies or assets belonging to third parties.
        4. Chapter 19 also contains specific provisions relating to the handling of Relevant Money by an Authorised Person conducting Payment Services.

    • COBS 14.2.3 Holding or Controlling Client Money or Relevant Money

      (a) An Authorised Person in Category 4 must not hold Client Money.
      (b) An Authorised Person which holds or controls Client Money for a Client or Relevant Money for a Payment Service User must comply with these Client Money Rules, and also the specific provisions in Chapter 19 relating to Relevant Money, as applicable.
      (c) Where the Client is a Market Counterparty, an Authorised Person engaging in Investment Business may exclude the application of the Client Money Rules but only where it has obtained the prior written consent of the Market Counterparty to do so.
      (d) An Authorised Person which holds or controls Client Money must arrange for a Client Money Auditor's Report to be submitted to the Regulator on an annual basis.

    • COBS 14.2.4 COBS 14.2.4 Payment of Client Money or Relevant Money into Client Accounts

      (a) Subject to the requirements in Chapter 19 in relation to Payment Services, where an Authorised Person holds or controls Client Money or Relevant Money it must ensure, except where otherwise provided in these Rules, that the Client Money and Relevant Money is paid into one or more Client Accounts within one Business Day of receipt.
      (b) An Authorised Person must not hold or deposit its own Money into a Client Account, except where:
      (i) it is a minimum sum required to open the account, or to keep it open;
      (ii) the Money is received by way of mixed remittance, provided the Authorised Person transfers out that part of the payment which is not Client Money or Relevant Money within one Business Day of the day on which the Authorised Person would normally expect the remittance to be cleared;
      (iii) interest credited to the account exceeds the amount payable to Clients or Payment Service Users, as applicable, provided that the Money is removed within twenty Business Days; or
      (iv) it is to meet a shortfall in Client Money or Relevant Money.
      (c) Where an Authorised Person deposits any Money into a Client Account, such Money is Client Money or Relevant Money, as applicable, until such time as the Money is withdrawn from the Client Account in accordance with the Client Money Rules or the requirements of Chapter 19 in the case of an Authorised Person conducting Payment Services.
      (d) An Authorised Person must maintain systems and controls for identifying Money which must not be in a Client Account and for transferring it out of the Client Account without delay.
      (e) Where an Authorised Person is aware that a Person may make a payment of Client Money or Relevant Money to the Authorised Person, it must take reasonable steps:
      (i) to ensure that the Person has sufficient information of the relevant account details to be able to transfer Client Money or Relevant Money, as applicable, directly to a Client Account, or otherwise to enable the Authorised Person to identify the Client Money or Relevant Money, as applicable; and
      (ii) to ensure that the Authorised Person is notified by that Person of such payment as soon as reasonably practicable.
      (f) An Authorised Person must have procedures for identifying Client Money and Relevant Money received by the Authorised Person, and for promptly recording the receipt of the Money either in the books of account or a register for later posting to and recording in the Client Account, or as otherwise specified in Chapter 19 of these Rules. The procedures must cover Client Money or Relevant Money, as applicable, received by the Authorised Person through any means.
      Guidance
      An Authorised Person holding or controlling Relevant Money in connection with the conduct of Payment Services is expected to identify, record and reconcile such amounts in accordance with the requirements of Chapter 19.

      • Guidance

        An Authorised Person holding or controlling Relevant Money in connection with the conduct of Payment Services is expected to identify, record and reconcile such amounts in accordance with the requirements of Chapter 19.

    • COBS 14.2.5 COBS 14.2.5 Client Accounts

      (a) A Client Account in relation to Client Money or Relevant Money, as applicable, is an account which:
      (i) is held with a Third-Party Agent as banker, pursuant to Rules 14.2.714.2.8;
      (ii) is established to hold Client Money or Relevant Money, as applicable;
      (iii) is maintained in the name of:
      (A) if an Abu Dhabi Global Market Firm, the Authorised Person; or
      (B) if a non-Abu Dhabi Global Market Firm, a Nominee Company controlled by the Authorised Person; and
      (iv) includes the words "Client Account" in its title.
      (b) An Authorised Person: 
      (i) must hold Client Money in a Client Account, a Designated Client Account or a Designated Client Fund Account. Rule 14.2.5 applies to each type of Client Account; and
      (ii) conducting Payment Services must hold Relevant Money in a Client Account.
      (c) An Authorised Person must maintain a master list of all Client Accounts. The master list must detail:
      (i) the name of the account;
      (ii) the account number;
      (iii) the location of the account;
      (iv) the banker or custodian, its address and contact information;
      (v) the account terms and conditions;
      (vi) whether the account is currently open or closed; and
      (vii) the date of opening or closure.
      (d) The details of the master list must be documented and maintained for at least six years following the closure of an account.

      • Guidance

        1. An Authorised Person holds all Client Money or Relevant Money, as applicable in Client Accounts for its Clients as part of a common pool of money so those particular Clients or Payment Service Users, as applicable, do not have a claim against a specific sum in a specific account; they only have a pro rata claim to the Client Money or Relevant Money, as applicable, in general to which a particular Statutory Trust relates, as one of the beneficiaries of such Statutory Trust. The purpose of controlling or holding Client Money or Relevant Money, as applicable, in a Client Account is to ensure that Money belonging to Clients or Payment Service Users, as applicable is segregated and readily identifiable from Money belonging to the Authorised Person, such that, following a Pooling Event, Clients or Payment Service Users, as applicable, will have a joint property interest in the Client Money or Relevant Money, as applicable, in proportion to each Client's or Payment Service Users’ entitlement in the Statutory Trust.
        2. Alternatively, an Authorised Person may hold or control Client Money belonging to a Client in a Client Account constituting a Statutory Trust solely for that Client i.e. a Designated Client Account or Designated Client Fund Account. An Authorised Person holds Client Money in Designated Client Accounts or Designated Client Fund Accounts for those Clients that requested their Client Money be part of a specific pool of money, so those particular Clients have a property interest in relation to a specific sum in a specific account constituting a Statutory Trust; they do not have a claim to the Client Money even if a Primary Pooling Event occurs (as described in Rule 14.4.2).
        3. A Designated Client Fund Account may be used for a Client only where that Client has consented to the use of that account and all other Designated Client Fund accounts which may be pooled with it. For example, a Client who consents to the use of bank A and bank B should have Client Money related to it held in a different Designated Client Fund account at bank B from a Client who has consented to the use of banks B and C.
        4. A Primary Pooling Event triggers a notional pooling of all the Client Money related to each Statutory Trust. The obligation to distribute Client Money or Relevant Money, as applicable, following a Pooling Event is described in the Client Money Distribution Rules.

    • COBS 14.2.6 Exceptions to Holding Client Money in Client Accounts

      (a) The requirement for an Authorised Person to hold Client Money in a Client Account does not, subject to (b), apply with respect to such Client Money:
      (i) received in the form of cheque, or other payable order, until the Authorised Person, or a Person or account controlled by the Authorised Person, is in receipt of the proceeds of that cheque;
      (ii) temporarily held by an Authorised Person before forwarding to a Person nominated by the Client; or
      (iii) in connection with a Delivery Versus Payment Transaction where:
      (A) in respect of a Client purchase, Client Money from the Client will be due to the Authorised Person within one Business Day upon the fulfilment of a delivery obligation; or
      (B) in respect of a Client sale, Client Money will be due to the Client within one Business Day following the Client's fulfilment of a delivery obligation.
      (b) An Authorised Person must pay Client Money received by it of the type described in (a)(ii) or (a)(iii) into a Client Account where it has not fulfilled its delivery or payment obligation within three days of receipt of the Money or Investments, unless in the case of the type of Client Money referred to in (a)(iii)(B), it instead safeguards Client Investments at least equal to the value of such Client Money.
      (c) An Authorised Person must maintain adequate records of all cheques and payment orders received in accordance with (a)(i) including, in respect of each payment, the:
      (i) date of receipt;
      (ii) name of the Client for whom payment is to be credited; and
      (iii) date when the cheque or payment order was presented to the Authorised Person's Third-Party Agent.
      (d) The records must be kept for a minimum of six years.
      (e) Cash held by an Authorised Firm that is a bank as a deposit in its capacity as a bank is not Client Money.
      (f) Cash received under a title transfer collateral arrangement from a Market Counterparty or Professional Client is not Client Money.

    • COBS 14.2.7 Appointment of a Third-Party Agent

      (a) An Authorised Person may pay, or permit to be paid, Client Money or Relevant Money, as applicable, to a Third-Party Agent in accordance with Rule 14.2.8(a) only where it has undertaken a prior assessment of the suitability of that Third-Party Agent and concluded on reasonable grounds that the Third-Party Agent is suitable to hold Client Money or Relevant Money, as applicable, in a Client Account.
      (i) When assessing the suitability of the Third-Party Agent, the Authorised Person must ensure that the Third-Party Agent will provide protections equivalent to the protections conferred by this section.
      (ii) An Authorised Person must have systems and controls in place to ensure that the Third-Party Agent remains suitable.
      (b) An Authorised Person must be able to demonstrate to the Regulator's satisfaction the grounds upon which the Authorised Person considers the Third-Party Agent to be suitable to hold that Client Money or Relevant Money, as applicable.
      (c) When assessing the suitability of a Third-Party Agent, an Authorised Person must have regard to:
      (i) its credit rating;
      (ii) its capital and financial resources in relation to the amount of Client Money or Relevant Money, as applicable, held;
      (iii) the insolvency regime of the jurisdiction in which it is located;
      (iv) its regulatory status and history;
      (v) its Group structure; and
      (vi) its use of agents and service providers.

    • COBS 14.2.8 COBS 14.2.8 Payment of Client Money or Relevant Money to a Third-Party Agent

      (a) Subject to (e), an Authorised Person may pass, or permit to be passed, a Segregated Client's Money to a Third-Party Agent only if:
      (i) the Client Money is to be used in respect of a Transaction or series or Transactions for that Client;
      (ii) the Client Money is to be used to meet an obligation of that Client; or
      (iii) the Third-Party Agent is a Bank or an Authorised Person which is authorised to accept or take Deposits.
      (b) In respect of (a)(i) and (a)(ii), an Authorised Person must not hold any excess Client Money with the Third-Party Agent longer than necessary to effect a Transaction or satisfy the Client's obligation.
      (c) When an Authorised Person opens a Client Account with a Third-Party Agent it must obtain, within a twenty Business Day period, a written acknowledgement from the Third-Party Agent stating that:
      (i) all Money standing to the credit of the account is held by the Authorised Person as agent and that the Third-Party Agent is not entitled to combine the account with any other account or to exercise any charge, mortgage, security, lien, right of set-off or combination or counterclaim against Money in that account in respect of any sum owed to it on any other account of the Authorised Person; and
      (ii) the title of the account includes the words "Client Account" as required under Rule 14.2.5(a)(iv).
      (d) If the Third-Party Agent does not provide the acknowledgement referred to in (c)within a twenty Business Day period, the Authorised Person must refrain from making further deposits of Client Money or Relevant Money, as applicable, with that Third-Party Agent and withdraw any Client Money or Relevant Money, as applicable, standing to the credit of that Client Account.

      • Guidance

        (d) The Regulator would consider twenty Business Days as being a reasonable period for an Authorised Person to receive a written acknowledgement from the Third-Party Agent.
        (e) If the Third-Party Agent does not provide the acknowledgement referred to in Rule 14.2.8(c) within a 30-day period, the Authorised Person must refrain from making further deposits of Client Money with that Third-Party Agent and withdraw any Client Money standing to the credit of that Client Account.

    • COBS 14.2.9 COBS 14.2.9 Payment of Client Money or Relevant Money from Client Accounts

      (a) An Authorised Person must have procedures for ensuring all withdrawals from a Client Account are authorised.
      (b) Subject to Rule 14.2.9(c), a Segregated Client's Client Money must remain in a Client Account until it is:
      (i) due and payable to the Authorised Person;
      (ii) paid to the Client on whose behalf the Client Money is held;
      (iii) paid in accordance with a Client instruction on whose behalf the Client Money is held;
      (iv) required to meet the payment obligations of the Client on whose behalf the Client Money is held;
      (v) becomes held by the Authorised Person pursuant to a title transfer collateral arrangement;
      (vi) becomes held by the Authorised Person in its capacity as a banker as a deposit; or
      (vii) paid out in circumstances that are otherwise authorised by the Regulator.
      (c) Client Money paid out by way of cheque or other payable order under Rule 14.2.9(cb) must remain in a Client Account until the cheque or payable order is presented to the Client's bank and cleared by the paying agent.
      (d) An Authorised Person must not use Client Money belonging of one Client to satisfy an obligation of another Client.

      • Guidance

        1. The effect of (d) is that an Authorised Person would be required to deposit its own Money into a Client Account to remedy a shortfall arising from a Client debit balance.
        2. An Authorised Person must have a system for ensuring no off-setting or debit balances occur on Client Accounts.

    • COBS 14.2.10 Client Disclosure

      (a) Before, or as soon as reasonably practicable after, an Authorised Person receives Client Money belonging to a Client, it must disclose to the Client on whose behalf the Client Money is held:
      (i) the basis and any terms governing the way in which the Client Money will be held;
      (ii) as required under Rule 14.2.14(e), the nature of any particular Client Money Statutory Trust in which the Client is interested, or if there is only one Statutory Trust, that fact;
      (iii) that the Client is subject to the protection conferred by the Client Money Rules and as a consequence:
      (A) this Money will be held separate from Money belonging to the Authorised Person; and
      (B) in the event of the Authorised Person's insolvency, winding up or other Pooling Event stipulated by the Regulator, the Client's Money will be subject to the Client Money Distribution Rules;
      (iv) whether interest is payable to the Client and, if so, on what terms;
      (v) if applicable, that the Client Money may be held in a jurisdiction outside the Abu Dhabi Global Market and the market practices, insolvency and legal regime applicable in that jurisdiction may differ from the regime applicable in the Abu Dhabi Global Market;
      (vi) if applicable, details about how any Client Money arising out of Islamic Financial Business is to be held;
      (vii) if applicable, that the Authorised Person holds or intends to hold the Client Money in a Client Account with a Third-Party Agent which is in the same Group as the Authorised Person; and
      (viii) details of any rights which the Authorised Person may have to realise Client Money held on behalf of the Client in satisfaction of a default by the Client or otherwise, and of any rights which the Authorised Person may have to close out or liquidate contracts or positions in respect of any of the Client's Investments.

    • COBS 14.2.11 COBS 14.2.11 Client Reporting

      (a) In relation to a Client to whom the Client Money Rules are applicable, an Authorised Person conducting Investment Business must send a statement to a Retail Client at least monthly or in the case of a Professional Client or Market Counterparty, at other intervals as agreed in writing with the Professional Client or Market Counterparty.
      (b) The statement must include:
      (i) the Client's total Client Money balances held by the Authorised Person reported in the currency in which the Client Money is held, or the relevant exchange rate if not reported in the currency in which the Money is held;
      (ii) the amount, date and value of each credit and debit paid into and out of the account since the previous statement; and
      (iii) any interest earned or charged on the Client Account since the previous statement.
      (c) The statement sent to the Client must be prepared within one calendar month of the statement date.

      • Guidance

        Authorised Persons conducting Payment Services must report to Payment Service Users in accordance with Chapter 19.

    • COBS 14.2.12 Reconciliation

      (a) An Authorised Person conducting Investment Business must maintain a system to ensure that accurate reconciliations of the Client Accounts are carried out as regularly as necessary but at least every calendar month.
      (b) The reconciliation must include:
      (i) a full list of individual Segregated Client credit ledger balances, as recorded by the Authorised Person;
      (ii) a full list of individual Segregated Client debit ledger balances, as recorded by the Authorised Person;
      (iii) a full list of unpresented cheques and outstanding lodgements;
      (iv) a full list of Client Account cash book balances; and
      (v) formal statements from Third-Party Agents showing account balances as at the date of reconciliation.
      (c) An Authorised Person must:
      (i) reconcile the individual credit ledger balances, Client Account cash book balances, and the Third-Party Agent Client Account balances;
      (ii) check that the balance in the Client Accounts as at the close of business on the previous Business Day was at least equal to the aggregate balance of individual credit ledger balances as at the close of business on the previous day; and
      (iii) ensure that all shortfalls, excess balances and unresolved differences, other than differences arising solely as a result of timing differences between the accounting systems of the Third-Party Agent and the Authorised Person, are investigated and, where applicable, corrective action is taken as soon as possible.
      (d) An Authorised Person must perform the reconciliations in (c) within ten Business Days of the date to which the reconciliation relates.
      (e) When performing the reconciliations, an Authorised Person must:
      (i) include in the credit ledger balances:
      (A) unallocated Client Money;
      (B) dividends received and interest earned and allocated;
      (C) sale proceeds which have been received by the Authorised Person and the Client has delivered the Investments or the Authorised Person holds or controls the Investment; and
      (D) Money paid by the Client in respect of a purchase where the Authorised Person has not remitted the Money to the counterparty or delivered the Investment to the Client; and
      (ii) deduct from the credit ledger balances:
      (A) Money owed by the Client in respect of unpaid purchases by or for the Client if delivery of those Investments has been made to the Client; and
      (B) Money remitted to the Client in respect of sales transactions by or for the Client if the Client has not delivered the Investments.
      (f) When performing reconciliations, an Authorised Person must maintain a clear separation of duties to ensure that an employee with responsibility for operating Client Accounts, or an employee that has the authority to make payments, does not perform the reconciliations under (a) to (d).
      (g) Reconciliation performed in accordance with (a) to (d) must be reviewed by a member of the Authorised Person who has adequate seniority.
      (h) The individual referred to in (g) must provide a written statement confirming the reconciliation has been undertaken in accordance with the requirements of this section.
      (i) The Authorised Person must notify the Regulator where there has been a material discrepancy with the reconciliation which has not been rectified.
      (j) A material discrepancy includes discrepancies which have the cumulative effect of being material, such as longstanding discrepancies.

    • COBS 14.2.13 Auditor's Reporting Requirements

      An Authorised Person engaged in Investment Business which holds Client Money for Segregated Clients must arrange for a Client Money Auditor's Report to be submitted to the Regulator on an annual basis.

    • COBS 14.2.14 Segregation and portability

      (a) Pursuant to section 4 of FSMR, an Authorised Person acts as trustee for all Client Money or Relevant Money, as applicable, received or held by it for the benefit of the Clients or Payment Service Users, as applicable, for whom that Client Money or Relevant Money is held, according to their respective interests in the relevant Statutory Trust.
      (b) In line with MIR 4.12, an Authorised Person that is also a Clearing Member of a Recognised Clearing House, shall offer Clients whose Client Money or Safe Custody Assets are rehypothecated or re-used to fund margin at a Recognised Clearing House in relation to Client transactions, the choice to clear their positions through an Omnibus Client Account ("Omnibus Client Segregation") or an individually segregated Client Account ("Individual Client Segregation") maintained by the Authorised Person with that Recognised Clearing House.
      (c) When a Client chooses Individual Client Segregation, any margin in excess of the Client's requirement shall also be transferred to the Recognised Clearing House and distinguished from the margins of other Clients of the Authorised Person and shall not be exposed to losses connected to positions recorded in another account.
      (d) To segregate Client Money (that would otherwise be held in a single Statutory Trust as the general pool of Client Money held for all Clients of the Authorised Person) for a specific Client or group of Clients clearing positions through a particular Client account at a Recognised Clearing House, a Clearing Member firm may, in accordance with these rules, create a separate Statutory Trust for Client Money receivables relating to a particular Client Account at that Recognised Clearing House (as in Rule 14.2.15).
      (e) An Authorised Person which creates a separate Statutory Trust as in (d), must notify all its Clients that it operates more than one Statutory Trust and must inform each Client of which Statutory Trust their Client Money forms part of and how it is identified.
      (f) The principles of this Rule will apply equally to any positions or margin at a Non-Abu Dhabi Global Market Clearing House subject to such derogations and waivers as the Regulator may prescribe.

    • COBS 14.2.15 Statutory Trusts

      (a) An Authorised Person receives and holds Client Money or Relevant Money, as applicable, as trustee in accordance with the following requirements.
      (b) The requirements in (a) are:
      (i) for the purposes of and on the terms of the Client Money rules and the Client Money Distribution Rules;
      (A) where an Authorised Person maintains only a single Statutory Trust as a general pool of Client Money or Relevant Money, as applicable, subject to (ii), for the Clients or Payment Service Users for whom that money is held, according to their respective interests in it;
      (B) where an Authorised Person has established one or more separate Statutory Trusts of Client Money, subject to (ii), each separate Statutory Trust is held for the Clients of the Authorised Person who are beneficiaries of that specific Statutory Trust according to their respective interests in it;
      (ii) for the payment of the costs properly attributable to the distribution of the Client Money or Relevant Money, as applicable, in accordance with (i), if such distribution takes place following the Failure of the Authorised Person; and
      (iii) after all valid claims and costs under (i) to (ii) have been met, for the Authorised Person itself.
      (c) In respect of Authorised Persons conducting Investment Business, the beneficiaries of each separate Statutory Trust are those Clients:
      (i) to whom the Authorised Person has delivered a Statutory Trust disclosure document under Rule 14.2.14(e);
      (ii) for whom the Authorised Person maintains, previously maintained or is in the process of establishing a margined transaction(s) in the relevant Client Account at the relevant Recognised Clearing House;
      (iii) who are interested in a Designated Client Fund Account or Designated Client Account; or
      (iv) to whom any Client Equity Balance or other Client Money is required to be segregated for the Client by the Authorised Person in respect of the margined transactions under (ii) from that separate Statutory Trust.
      (d) An Authorised Person which is subject to the Client Money Rules receives and holds Client Money or Relevant Money, as applicable, as trustee on the terms in Rule 14.2.14(d), subject to its obligations to hold Client Money as trustee.

    • COBS 14.2.16 Primary Pooling Event

      Following a Primary Pooling Event, an Authorised Person must comply with Rule 14.3.7 and all Client Money or Relevant Money, as applicable, will be subject to such Rules.

    • COBS 14.2.17 Client Disclosure

      (a) If an Authorised Person holds or controls money for a Market Counterparty which is not subject to these Client Money Rules, it must disclose to that Market Counterparty in writing that:
      (i) the protections conferred by the Client Money Rules do not apply to such money;
      (ii) such money may be mixed with money belonging to the Authorised Person, and may be used by the Authorised Person in the course of the Authorised Person's business; and
      (iii) following a Pooling Event, it will be an unsecured creditor.
      (b) The Authorised Person must obtain that Market Counterparty's written acknowledgement of the disclosures made prior to holding or controlling Client Money for that Market Counterparty.

    • COBS 14.2.18 Record Keeping

      (a) An Authorised Person must maintain records:
      (i) which enable the Authorised Person to demonstrate compliance with these Rules;
      (ii) which enable the Authorised Person to demonstrate and explain all entries of Client Money held or controlled in accordance with these Rules; and
      (iii) of all cheques relating to Client Money received and forwarded.
      (b) Records must be kept for a minimum of six years.
      (c) An Authorised Person must maintain proper books and accounts based on the double- entry booking principle. They must be legible, up to date and contain narratives with the entries which identify and provide adequate information about each transaction. Entries must be made in chronological order and the current balance must be shown on each of the Authorised Person's ledgers.

    • COBS 14.2.19 Notification of Failure to Comply

      An Authorised Person must inform the Regulator in writing without delay if it has not complied with, or is unable, in any material respect, to comply with the requirements in this Rule 14.2.