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  • Safeguarding Shari'a-Compliant Financial Instruments (i.e. Custodian)

    • LR-1.3.26

      Safeguarding Shari'a-compliant financial instruments means the safeguarding of Shari'a-compliant financial instruments for the account of clients.

      October 2007

    • LR-1.3.27

      A person does not carry on an activity specified in Rule LR-1.3.26 if the person receives documents relating to a financial instrument for the purpose of onward transmission to, from or at the direction of the person to whom the financial instrument belongs; or else is simply providing a physical safekeeping service such as a deed box.

      October 2007

    • LR-1.3.28

      A person does not carry on an activity specified in Rule LR-1.3.26 if a third person, namely a qualifying custodian, accepts responsibility with regard to the financial instrument.

      October 2007

    • LR-1.3.29

      A "qualifying custodian" means a person who is:

      (a) A licensee who has permission to carry on an activity of the kind specified in Rule LR-1.3.26; or
      (b) An exempt person in relation to activities of that kind.
      Amended October 2010
      October 2007

    • LR-1.3.30

      A person does not carry on an activity specified in Rule LR-1.3.26 if they are managing a central depository, which is part of an exchange recognised by CBB.

      October 2007

    • LR-1.3.31

      The following are examples of activities, when taken in isolation, are unlikely to be regarded an activity of the kind specified under Rule LR-1.3.26:

      (a) Providing information as to the number of units or the value of any assets safeguarded; and
      (b) Converting currency.
      Amended October 2010
      October 2007

    • LR-1.3.32

      A person undertaking an activity of the kind specified under Rule LR-1.3.26 may also be engaged in the administration of the financial instruments, including related services such as cash/ collateral management.

      October 2007