ES-1.10 ES-1.10 Module CL (Client Assets)
ES-1.10.1
This Module provides detailed Rules and Guidance with respect to the holding of
client assets byinvestment firm licensees . They are aimed at ensuring the proper protection of such assets, to restrict the risk ofclient assets being commingled withinvestment firm licensee assets (without clients' consent), or otherwise misused.Amended: January 2007ES-1.10.2
As a general rule,
client assets are required to be segregated from a firm's own assets, andclient money must be held in aclient bank account . Various other restrictions and protections apply toclient money , whilst the rules also apply certain reconciliation and reporting requirements.ES-1.10.3
Finally, the Module also contains certain requirements relating to the provision of custody services (Chapter CL-2), the treatment of assets when held as collateral (Chapter CL-3), controls surrounding the application of client
mandates (Chapter CL-4), and rules regarding third party related distribution events (Chapter CL-5).
