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  • Segregation of Client Assets

    • MIR-4.7.5

      The member, or any person acting on its behalf, shall maintain sufficient systems and procedures in respect of the handling of securities, money or other assets, including but not limited to the requirement of maintaining books and records, segregation of the clients' securities, money and assets and the risk management and internal controls systems to address this requirement.

      Adopted January 2010

    • MIR-4.7.6

      A licensed member must hold client assets separate from its own at all times. The licensed member must, in connection with any clients' securities and funds received in the course of their business, establish and maintain separate client accounts, segregated from those used for their own accounts.

      Amended: April 2013
      Adopted January 2010

    • MIR-4.7.7

      A member may only use a client's assets for its own account, and/or for the account of any of its other clients if:

      (a) That client has given his express consent in writing;
      (b) The use of the client assets is restricted to the terms and conditions stipulated on the agreement agreed and signed by it; and
      (c) The agreement in which that client's consent is requested by the member gives clear information to him on:
      (i) The rights, obligations and responsibilities of the member and/or of the clients for whose account the member has been allowed to use the client's assets, with respect to the use of such assets; and
      (ii) The risks involved.
      Amended: January 2019
      Amended: April 2013
      Adopted January 2010

    • MIR-4.7.7A

      [This Paragraph was deleted in January 2019].

      Deleted: January 2019
      Added: April 2013

    • MIR-4.7.8

      A member should communicate to its clients in writing, at a minimum, the information regarding client assets held. This information must be reported after the initial transaction date not later than the required date stipulated in the designated clearing, settlement and central depository system.

      Adopted January 2010

    • MIR-4.7.9

      The member may maintain and hold the clients assets under the following agreements or arrangements:

      (a) Non discretionary securities account;
      (b) Discretionary accounts and portfolios;
      (c) Margin trading arrangements;
      (d) Depository and custody accounts;
      (e) Bank accounts related to the securities transactions (if applicable);
      (f) Securities lending and borrowing arrangements;
      (g) For the purpose of collateral arrangements;
      (h) Under specific mandates and arrangements approved by the CBB and SRO.

      All the abovementioned arrangements shall be entered into by and in a duly signed agreement between the member and its clients.

      Adopted January 2010