8.2.9. Conditions for use of Third Party Account Providers
Save as provided in this COB 8.2.9, an Authorised Firm may only pass, or permit to be passed, Client Money to a Third Party Account Provider if:
- (a) the Client Money is to be used in respect of a Transaction or series or Transactions for that Client;
- (b) the Client Money is to be used to meet an obligation of that Client;
- (c) the Third Party Account Provider is a Bank or a Regulated Financial Institution which is authorised to accept or take Deposits; or
- (d) the Client Money is put into a Shari'ah product that is offered by a Third Party Account
Provider and that has been approved by the AFSA as being suitable for the holding of Client Money.
In respect of (a) and (b) above, an Authorised Firm must not hold the Client Money with the Third Party Account Provider longer than necessary to effect a Transaction or satisfy the Client's obligation.
- 8.2.10. Holding Client Money with Third Party Account Providers