INMA 6.1.15 INMA 6.1.15 Use of customers’ investments for firms’ own purposes(1) Subject to subrule (2), an INMA firm that provides custody services must not use a customer’s custody investment for its own purpose or that of another person.(2) An INMA firm may use a customer’s custody investment for its own purposes or those of another person, if it has systems and controls to ensure that:(a) it obtains the customer’s prior written permission;(b) adequate records are maintained to protect custody investments that are applied as collateral or used for stock lending;(c) equivalent assets can be returned to the customer; and(d) the customer is not disadvantaged by the use of the investment.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).
INMA 6.1.15 Guidance
The permission need not be specific but may be a general permission given as part of the customer's acceptance of an appropriate statement (about the use of the customer's custody investments) in the firm's terms of business.
Note Under CIPR, Parts 4.4, 5.2 and 5.2, an investment business firm must give a customer a statement, in writing, of the terms and conditions on which the firm will conduct investment business for the customer.
Amended by QFCRA RM/2019-4 (as from 1st January 2020).