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  • CL-3.2 CL-3.2 Third Parties

    • CL-3.2.1

      An investment firm licensee may only permit a client's collateral to be held by a third party where:

      (a) It has reasonable grounds to believe that the third party is suitable to hold that collateral; and
      (b) The investment firm licensee is able to demonstrate to the CBB's satisfaction the grounds upon which it considers the third party to be suitable to hold clients' collateral.
      Amended: January 2007

    • CL-3.2.2

      Before an investment firm licensee deposits client assets with a third party it must notify the third party that:

      (a) The collateral does not belong to the investment firm licensee; and
      (b) The third party is not entitled to claim any lien or right of retention or sale over the collateral except to cover the obligations of the client which gave rise to that deposit, pledge, charge or security arrangement or any charges relating to the administration or safekeeping of the collateral.
      Amended: January 2007