Back Custom print Link Text Only Rich Text Print

  • CL-2.3 CL-2.3 Reconciliation

    • CL-2.3.1

      An investment firm licensee must, as often as is necessary, but at a minimum on a monthly basis, perform a reconciliation of its record of safe custody financial instruments for which it is accountable but which it does not physically hold, with statements obtained from custodians. In the case of dematerialised safe custody financial instruments not held through a custodian, this reconciliation must be performed with statements obtained from the person who maintains the record of legal entitlement.

      Amended: July 2008

    • CL-2.3.2

      An investment firm licensee must, as often as is necessary, but no less than every six months (or twice in a period of twelve months but at least five months apart), carry out:

      (a) A count of all safe custody financial instruments it physically holds on behalf of clients and reconcile the result of that count with its record of safe custody financial instruments that it physically holds on behalf of its clients; and
      (b) A reconciliation between the investment firm licensee's record of client holdings, and the firm's record of the location of safe custody financial instruments.
      Amended: January 2007

    • CL-2.3.3

      Wherever possible, an investment firm licensee should ensure that the reconciliations are carried out by a person (for example an employee of the investment firm licensee) who is independent of the production or maintenance of the records to be reconciled.