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

Past version: effective from 21/10/2015 - 20/10/2015
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(a) Subject to Rule 14.2.8(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 Rule 14.2.8(a)(i) and Rule 14.2.8(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 thirty 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).