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  • CL-B.1 CL-B.1 License Categories

    • CL-B.1.1

      This Module applies to every investment firm licensee that undertakes the activity of safeguarding clients' financial instruments; or holds or controls client assets.

    • CL-B.1.2

      Since Category 1 and Category 2 investment firms only are permitted to undertake the activity specified in Rule CL-B.1.1, the requirements contained in this Module do not apply to Category 3 investment firm licensees.

    • CL-B.1.3

      Client assets comprise money or financial instruments belonging to clients of an investment firm licensee, which are held or controlled by the investment firm licensee in connection with the conduct of regulated investment services.

    • CL-B.1.4

      Client assets are held or controlled by an investment firm licensee on behalf of a client if they are:

      (a) Directly held by the investment firm licensee;
      (b) Held in an account in the name of the investment firm licensee;
      (c) Held by a person, or in an account in the name of a person, controlled by the investment firm licensee; or
      (d) Held in an account with another person, controlled by the investment firm licensee.
      Amended: January 2007

    • CL-B.1.5

      The CBB would consider a person to be controlled by an investment firm licensee if that person is inclined to act in accordance with the instructions of the investment firm licensee.

      Amended: January 2007

    • CL-B.1.6

      The CBB would consider an account to be controlled by an investment firm licensee if that account is operated in accordance with the instructions of the investment firm licensee.

      Amended: January 2007