COBS 16A.5 Statements of client financial instruments or client funds

(1)

 A firm that holds financial instruments or client money for a client must send that client, at least on a quarterly basis, a statement in a durable medium of those financial instruments or client money, unless:

1. (a)

    such a statement:

   1. (i)

       has been provided in a periodic statement; or

   2. (ii)

       has been requested more frequently by a client, in which case the firm must provide it more frequently at a commercial cost; or

2. (b)

    the firm:

   1. (i)

       provides the client with access to an online system, which qualifies as a durable medium, where the client can easily access up-to-date statements of their financial instruments or client money; and

   2. (ii)

       has evidence that the client has accessed an up-to-date statement at least once during the relevant quarter.

(2)

 A UK credit institution need not send a statement in respect of deposits within the meaning of Article 2(1)(23A) of MiFIR held by it.

(3)

 The statement referred to in (1) must include:

1. (a)

    details of all the financial instruments or client money held by the firm for the client at the end of the period covered by the statement;

2. (b)

    the extent to which any financial instruments or client money have been the subject of securities financing transactions;

3. (c)

    the extent of any benefit that has accrued to the client by virtue of participation in any securities financing transactions, and the basis on which that benefit has accrued;

4. (d)

    a clear indication of the assets or client money which are subject to the rules in CASS relating to MiFID business and those that are not, such as those that are subject to title transfer collateral arrangements and excluded either from the custody rules as a result of CASS 6.1.6R(3) or from the client money rules as a result of CASS 7.11.1R(4);

5. (e)

    a clear indication of which assets are affected by any peculiarities in their ownership status, for instance due to a security interest; and

6. (f)

    the market or estimated value, when the market value is not available, of the financial instruments included in the statement with a clear indication of the fact that the absence of a market price is likely to be indicative of a lack of liquidity. The evaluation of the estimated value must be performed by the firm on a best effort basis.

(4)

 In cases where the portfolio of a client includes the proceeds of one or more unsettled transactions, the information referred to in (3)(a) may be based either on the trade date or the settlement date, provided that the same basis is applied consistently to all such information in the statement.