MiFID II requires companies to take steps to prevent unauthorized use of the client`s assets, including agreed procedures, when a client does not have sufficient assets to settle a transaction, to monitor its ability to provide securities with corrective action if this is not possible, and to immediately request undelivered securities. Implementation of this proposal may include updating customer agreements. Measures: to the extent that companies do not yet have agreements that limit the right to pledge to respect local law, companies must amend the agreements. Measures: Companies must ensure that agreements with custodians comply with these requirements and consider the establishment of a system to monitor this system, possibly with the obligation to deprive the custodian of compliance by its delegation with the above requirements. (e) “trade agreement,” any agreement under which we provide child care and/or child care; Measures: Companies may have to amend agreements and review/implement systems and controls to monitor and correct deficits in client assets and funds. MiFID II expands this requirement when a company has delegated custody to a sub-custodian. 2.14 If your financial instruments are affected by the specifics of their property status, for example. B due to such a security interest, we provide you with a list of sub-depositors who, as part of their sub-euration contract with us, benefit from a securities interest or who record it on your financial instruments. Currently, the FCA requires companies that transfer retention obligations to third parties to ensure that deposits are included: the retention rules contained in Chapter 6 of the Financial Conduct Authority`s (CASS) Client Asset Management (CASS) repository contain details of what a company should do when operating the regulated investment protection and management business.
For more information on this activity, see the practical note: Protection and Investment Management. The rules apply to deposit facilities, which include secure deposit facilities (called facilities that a company receives or holds on behalf of a client) and all other assets held in the same portfolio as secure custodians for the same client. A company has room to assess the application of conservation rules to its non-secure deposit facilities and must treat them in a manner appropriate to their nature and value.