COBS 14.2.10 Client Disclosure

Past version: effective from 21/10/2015 - 20/10/2015
To view other versions open the versions tab on the right

(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.