• COBS 15.5 COBS 15.5 Holding or Arranging Custody with Third-Party Agents

    • COBS 15.5.1

      (a) Before an Authorised Person holds a Safe Custody Investment with a Third-Party Agent or Arranges Custody through a Third-Party Agent, it must undertake an assessment of that Third-Party Agent and have concluded on reasonable grounds that the Third-Party Agent is suitable to hold those Safe Custody Investments.
      (b) An Authorised Person must have systems and controls in place to ensure that the Third-Party Agent remains suitable.
      (c) 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 in this section.

    • COBS 15.5.2

      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 Safe Custody Investments.

    • COBS 15.5.3

      When assessing the suitability of a Third-Party Agent, an Authorised Person must have regard to:

      (a) its credit rating;
      (b) its capital and financial resources in relation to the amount of Safe Custody Investments held;
      (c) the insolvency regime of the jurisdiction in which it is located;
      (d) its arrangements for holding the Investments;
      (e) its regulatory status, expertise, reputation and history;
      (f) its Group structure;
      (g) its use of agents and service providers; and
      (h) any other activities of the agent.