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  • BC-2.4 BC-2.4 Accepting Clients

    • Applicability

      • BC-2.4.1

        This section applies to retail clients only.

    • Terms of Business

      • BC-2.4.2

        Investment firm licensees must provide their retail clients with their terms of business, setting out the basis on which the regulated investment services are to be conducted.

      • BC-2.4.3

        The terms of business in relation to providing regulated investment services to a retail client must take the form of a client agreement.

      • BC-2.4.4

        The terms of business must include the rights and obligations of parties to the agreement, as well as other terms relevant to the regulated investment services. The terms of business must include, but are not limited to, the items included in Paragraph BC-2.12.2.

      • BC-2.4.5

        An application form in relation to regulated investment services will be deemed to be a client agreement, provided the form includes the principal terms and conditions of the service, such that the client is provided sufficient information to allow him to understand the basis on which the service is to be conducted.

        Amended: January 2007

      • BC-2.4.6

        The client agreement must be provided in good time prior to providing the regulated investment service, and it must set out or refer to, among other matters, the rights and obligations of the parties to the agreement, and the terms on which the service is to be conducted.

      • BC-2.4.7

        For the purposes of Rule BC-2.4.6, "good time" should be taken to mean sufficient time to enable the client to consider properly the service or financial instrument on offer before he is bound.

    • Client Understanding and Acknowledgement

      • BC-2.4.8

        Investment firm licensees must not enter into a client agreement unless they have taken reasonable care to ensure that their retail client has had a proper opportunity to consider the terms.

      • BC-2.4.9

        Investment firm licensees must obtain their retail client's consent to the terms of the client agreement as evidenced by a signature or an equivalent mechanism.

      • BC-2.4.10

        The equivalent mechanism refers to instances where a client may have signed a mandate letter or other document accompanying the terms of the client agreement.

        Amended: January 2007

      • BC-2.4.11

        The client agreement must contain the signature of both parties to the agreement. If the agreement is signed by only the client, copies of the signed agreement must be provided by the investment firm licensee to the client. A copy of the signed client agreement must be provided by the Investment firm licensee to the client.

        Amended: October 2017

    • Records

      • BC-2.4.12

        Investment firm licensees must keep sufficient records of client agreements and any documents referred to in the client agreement as soon as the agreement comes into force, for CBB's supervision purposes.

        Amended: January 2007

      • BC-2.4.13

        Detailed record-keeping requirements are contained in Module GR (General Requirements) and Module FC (Financial Crime).