INMA 8.1.1 Client mandates — systems and controls

(1) In this Chapter:

mandate means a written authority from an investment business firm’s customer under which the firm may control assets or liabilities of the customer in the course of, or in connection with, the firm’s investment business.

Examples of authority

1 authority for direct debit of a bank account
2 authority to charge a credit card.
(2) If an investment business firm holds 1 or more mandates, it must establish appropriate systems and controls in relation to its use of the mandates to prevent the misuse of the authority given by the mandates.
(3) The systems and controls must include the following:
(a) an up-to-date list of the firm’s mandates and all the conditions and restrictions on the use of each mandate;
(b) a record of every transaction entered into using a mandate;
(c) appropriate controls to ensure that each transaction is within the scope of the authority given by the relevant mandate;
(d) a record of details of the procedures and authorities for giving and receiving instructions under the mandates;
(e) taking all reasonable steps to ensure that anyone who is, or is likely to be, required to give or receive instructions under a mandate is fully aware of its terms, including:
(i) the procedures and authorities referred to in paragraph (d); and
(ii) all the conditions and restrictions (if any) on its use.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).