COBS 14.2.17 Client Disclosure
Past version: effective from 21/10/2015 - 20/10/2015
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(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.