INMA 5.6.3 When client money protection rules do not apply — delivery-versus-payment transactions through commercial settlement systems
(1) Subject to subrule (3), the client money protection rules do not apply to money received from a customer of an investment business firm in relation to a delivery-versus-payment transaction through a commercial settlement system if:
(a) the firm has elected not to treat money from that customer as client money;
(b) the firm has given the customer a notification under rule 5.6.1(1)(b);
(c) in the case of a customer purchase, the money will be due to the firm within 1 business day after the firm delivers the investments; and
(d) in the case of a customer sale, the money will be due to the customer within 1 business day after the customer delivers the investments.
(2) The notification required by subrule (1) (b) may be in the firm's terms of business.
(3) Money about which an election has been made in accordance with subrule (1) (a) must be treated as client money if the delivery or payment by the firm does not occur within 3 business days after the date of the payment or delivery of the investments by the customer.
|Derived from QFCRA RM/2014-4 (as from 1st January 2015).|