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  • CL-2.1 CL-2.1 General Requirements

    • CL-2.1.1

      The rules in this section apply to investment firm licensees that undertake safeguarding of client financial instruments.

    • CL-2.1.2

      An investment firm licensee which holds or controls safe custody financial instruments must have systems and controls in place to:

      (a) Ensure the proper safeguarding of such safe custody financial instruments;
      (b) Ensure that such safe custody financial instruments are identifiable and secure at all times;
      (c) Be able to evidence compliance with the requirements in Section CL-2 to its external auditors and the CBB.
      Amended: January 2007

    • CL-2.1.3

      As part of these protections, the custody rules require an investment firm licensee to take appropriate steps to protect safe custody financial instruments for which it is responsible. These rules are designed primarily to restrict the commingling of client and investment firm licensee assets and minimise the risk of the client's safe custody financial instruments being used by the firm without the client's agreement or contrary to the client's wishes, or being treated as the investment firm licensee's assets in the event of insolvency.