IMEB 6.1.1 Application of chapter 6

(1) This chapter applies to a firm that receives or holds relevant investments for the purpose of securing the obligations of a client to the firm in the course of, or in connection with, conducting insurance mediation or captive insurance management in relation to long term insurance contracts if—
(a) the client's entire legal and beneficial interest in the relevant investments has been transferred to the firm; or
(b) the security arrangements give to the firm a right to use the relevant investments as if the client's entire legal and beneficial interest in the relevant investments had been transferred to the firm.
(2) This chapter does not apply if a firm's interest in the relevant investments is a bare security interest.
(3) For this chapter, a security interest in a relevant investment is a bare security interest if it gives the firm the right to realise the relevant investment
(a) only on the client's default; and
(b) without a right to use the relevant investment except on the client's default.
(4) Subrule (1) is subject to the obligation to return equivalent relevant investments to the client on satisfaction of the client's obligations to the firm.
Derived from QFCRA RM/2011-3 (as from 1st July 2011)