Chapter 10: Credit Institutions
The purpose of this chapter is to assist credit institutions that will become subject to the Client Asset Requirements (CAR) for the first time from 1 January 2024.
Designation and Registration
- Credit institutions that will become subject to the CAR for the first time from 1 January 2024 should review relevant documentation relating to existing third party relationships to ensure that third party client asset account(s) that have been opened prior to the application of the CAR to credit institutions are correctly designated. This review and any necessary amendments arising from it should be completed in advance of 1 January 2024 and the credit institution should maintain evidence of this review.
- In addition, credit institutions should ensure, in advance of 1 January 2024 that any agreements in place for existing third party relationships (e.g. Confirmation Letters or Custodian Agreements) do not contradict/contravene the provisions contained in the CAR or MiFID client asset rules, in particular, Regulations 54 and 55 of the CAR. Where a new third party client asset account is to be established on or after 1 January 2024, the credit institution will need to have facilities agreement in place with that third party.
Client Disclosure and Consent
- Credit institutions that will become subject to the CAR for the first time on 1 January 2024 should make the Client Asset Key Information Document (CAKID) available to each existing retail client as of that date.
- Credit institutions that will become subject to the CAR for the first time from 1 January 2024 should review any prior written consents received from existing clients against the provisions in Regulation 63(1) of the CAR. This review and any necessary actions arising from it should be completed in advance of 1 January 2024.
Issued: 4 July 2023
Last revision: 4 July 2023