8.3.13. Client disclosure
An Authorised Firm that holds Client Investments belonging to a Segregated Client must disclose the following information to the Client:
- (a) that the Client is subject to the protections conferred by the Client Investments Rules;
- (b) the arrangements for recording and registering Client Investments, claiming and receiving dividends and other entitlements and interest and the giving and receiving instructions relating to those Client Investments (including, if applicable, a statement that the Authorised Firm intends to mix the Client Investments of the Client with those of other Clients);
- (c) whether the Client Investments of that Client may be held by a third party on behalf of the Authorised Firm, and if so, what degree of responsibility the Authorised Firm has for any acts or omissions of the third party; and what the likely consequences are for the Client of the insolvency of the third party;
- (d) if applicable, that the Client Investments may be held in a jurisdiction outside the AIFC and the market practices, insolvency and legal regime applicable in that jurisdiction may differ from the regime applicable in the AIFC;
- (e) details of any rights which the Authorised Firm may have to realise Client Investments held on behalf of the Client in satisfaction of a default by the Client or otherwise; and
- (f) the method and frequency upon which the Authorised Firm will report to the Client in relation to its Client Investments.
- 8.1.5. Arranging Custody