• COBS 15.6 COBS 15.6 Safe Custody Agreements with Third-Party Agents

    • COBS 15.6.1

      Before an Authorised Person passes, or permits to be passed, Safe Custody Investments to a Third-Party Agent it must have procured a written acknowledgement from the Third-Party Agent stating:

      (a) that the title of the account sufficiently distinguishes that account from any account containing Investments belonging to the Authorised Person, and is in the form requested by the Authorised Person;
      (b) that the Client Investment will only be credited and withdrawn in accordance with the instructions of the Authorised Person;
      (c) that the Third-Party Agent will hold Client Investments separately from assets belonging to the Third-Party Agent;
      (d) the arrangements for recording and registering Client Investments, claiming and receiving dividends and other entitlements and interest and the giving and receiving of instructions;
      (e) that the Third-Party Agent will deliver a statement to the Authorised Person (including the frequency of such statement), which details the Client Investments deposited to the account;
      (f) that all Investments standing to the credit of the account are 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, lien, right of set-off or counterclaim against Investments in that account in respect of any sum owed to it on any other account of the Authorised Person; and
      (g) the extent of liability of the Third-Party Agent in the event of default.

    • COBS 15.6.2

      An Authorised Person must maintain for at least six years, records of all Safe Custody Agreements and any instructions given by the Authorised Person to the Third-Party Agent under the terms of the agreement.