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  • Segregation of Client Assets

    • CL-1.1.1

      Except to the extent permitted by these rules (Paragraph CL-1.1.2), an investment firm licensee must hold client assets separate from its own.

      Amended: July 2008

    • CL-1.1.2

      An investment firm licensee may manage client's assets on a discretionary basis if:

      (a) That client has given his express consent in writing;
      (b) The use of the client assets is restricted to the terms agreed by him; and
      (c) The document in which that client's consent is requested by the investment firm licensee gives clear information to him on:
      (i) The obligations and responsibilities of the investment firm licensee and/or of the clients for whose account the investment firm licensee has been allowed to use the client's financial instruments, with respect to the use of the financial instruments (including the terms for the restitution of the financial instruments); and
      (ii) The risks involved.
      Amended: April 2013
      Amended: January 2007

    • CL-1.1.3

      An investment firm licensee should communicate to its clients in writing, at a minimum, the information specified in Guidance Paragraph CL-6.1.2, regarding client assets held. This information must be reported as soon as practicable, but no later than 10 business days from the initial transaction date. Subsequent statements must be provided in accordance with client reporting requirements under Section CL-1.3.

    • CL-1.1.4

      [This Paragraph was deleted in April 2013.]

      Deleted: April 2013

    • CL-1.1.5

      [This Paragraph was deleted in April 2013.]

      Deleted: April 2013