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  • Safeguarding Financial Instruments (i.e. Custodian)

    • AU-1.4.32

      Safeguarding financial instruments means the safeguarding of financial instruments for the account of clients.

    • AU-1.4.33

      A person undertaking an activity of the kind specified under Rule AU-1.4.32 may also be engaged in the administration of financial instruments as defined in CBB Rulebook Volume 5 Module AU (Administrators) Paragraphs AU-1.1.11 and AU-1.1.12, including related services such as cash/collateral management, given that strict adherence to segregation of duties is observed.

      Amended: July 2019
      Amended: January 2012
      Amended: July 2010

    • AU-1.4.34

      A person undertaking an activity of the kind specified under Rule AU-1.4.32 cannot execute negotiable instruments such as cheques on behalf of a client.

      Amended: July 2010
      Amended: July 2007

    • AU-1.4.35

      A person does not carry on an activity specified in Rule AU-1.4.32 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.

      Amended: July 2010
      Amended: July 2007

    • AU-1.4.36

      A person does not carry on an activity specified in Rule AU-1.4.32 if a third person, namely a qualifying custodian, accepts responsibility with regard to the financial instrument.

      Amended: July 2010

    • AU-1.4.37

      A 'qualifying custodian' is a licensee who has permission to carry on an activity of the kind specified in Rule AU-1.4.32.

      Amended: July 2010
      Amended: July 2007

    • AU-1.4.38

      A person does not carry on an activity specified in Rule AU-1.4.32 if they are managing a central depository, which is part of an exchange recognised by the CBB.

      Amended: July 2010
      Amended: July 2007

    • AU-1.4.39

      The following are examples of activities which, when taken in isolation, are unlikely to be regarded as an activity of the kind specified under Rule AU-1.4.32:

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

    • AU-1.4.40 [This Paragraph deleted 07/2007.]

      Deleted: July 2007