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    • Category 1 investment firm

      An investment firm licensee as defined in AU-1.1.13.

    • Category 2 investment firm

      An investment firm licensee as defined in AU-1.1.15.

    • Category 3 investment firm

      An investment firm licensee as defined in AU-1.1.17.

    • Chief Executive, Chief Executive Officer or CEO

      Chief executive, chief executive officer or CEO. The board shall determine that person's actual title, which may be 'CEO', 'Chief Executive Officer', 'President', 'Managing Director', or another title.

      Amended: January 2011
      Amended: July 2007

    • Client

      A client is a person with or for whom an investment firm licensee conducts or intends to conduct regulated investment services.

    • Client Agreement

      Terms of business, which the client of the investment firm licensee has consented to in writing.

    • Client Asset Protection Rules

      Rules contained in Section CL-1.1.

    • Client Assets

      Money or financial instruments belonging to clients of an investment firm licensee that are held or controlled by the investment firm licensee in connection with the conduct of regulated investment services.

    • Client Bank Account

      A bank account held by an investment firm licensee, in order to hold client money: cf. CL-1.1.6.

      Amended: July 2007

    • Client Money

      Money (of any currency), which, in the course of carrying on regulated investment business, an investment firm licensee holds in respect of any investment agreement entered into, or to be entered into, with or for a client.

    • Closed-ended fund(s)

      Closed-ended funds are CIUs with a limited number of holdings. Where the fund vehicle is a company, holdings can take the form of shares. New holdings are rarely issued after the fund is launched and are not normally redeemable until the fund liquidates. Typically an investor can acquire or dispose of holdings in a closed-ended fund by buying or selling them on a secondary market, from a market intermediary or other investor, rather than by dealing with the CIU itself.

      Adopted: July 2007

    • Code

      The Investment Business Code of Practise contained in Chapter BC-2.

    • Collective investment undertaking(s) (CIU(s))

      Collective investment undertakings ('CIUs') are undertakings:

      (a) The sole object of which is the collective investment of capital raised from the public in financial instruments or other assets and which operates on the basis of risk-spreading; and
      (b) The holdings of which are re-purchased or redeemed, directly or indirectly, out of those undertakings' assets.
      Amended: January 2012
      Amended: July 2007

    • Conflict of interest

      A situation when a person or an entity has competing professional or personal obligations to other parties in a financial transaction (e.g. underwriting a securities transaction and simultaneously advising clients whether to buy the security or not) or in ongoing financial relationships (e.g. when a licensee has a director or one of its major borrowers on its board), or personal or financial interests that would make it difficult to fulfil his duties fairly.

      Added: October 2011

    • Controlled function

      A function carried on by an approved person in relation to an investment firm licensee that requires prior CBB approval: cf. AU-1.2.2.

      Amended: July 2007

    • Controller

      A controller is a natural or legal person who:

      (a) Holds 10% or more of the shares in the licensee ("L"), or is able to exercise (or control the exercise) of more than 10% of the voting power in L; or
      (b) Holds 10% or more of the shares in a parent undertaking ("P") of L, or is able to exercise (or control the exercise) of more than 10% of the voting power in P; or
      (c) Is able to exercise significant influence over the management of L or P.
      Amended: January 2011
      Amended: July 2007

    • Conventional bank licensee

      A bank licensed by CBB under Volume 1 of the CBB Rulebook, and generally operating according to conventional finance principals (as opposed to operating in accordance with Islamic finance principles).

      Amended: July 2007

    • Custodian(s)

      A custodian is a person mandated to hold and safeguard the financial instruments and other assets of a person, such as a collective investment undertaking (CIU).

      Adopted: July 2007