1.1
Rule 4.15.5 provides that at least one member of senior management or delegate staff (whether of the Trading Member or the Trading Member’s related corporation or otherwise) independent of the Trading Member’s sales or dealing, must approve the opening of a customer account carried on the books of the Trading Member.
Added on 24 March 202024 March 2020.
1.2
This Practice Note provides guidance on how a Trading Member may satisfy the above requirement.
Added on 24 March 202024 March 2020.
2.1
A Trading Member will be deemed to have obtained the approval of senior management or delegate staff independent of the Trading Member’s sales or dealing for the opening of a customer account if:
Added on 24 March 202024 March 2020.
2.2
In the spirit of the rule, the pre-defined approval criteria should minimally address the risks posed by the client with regard to credit, money laundering and terrorist financing.
Added on 24 March 202024 March 2020.
2.3
An example of a set of pre-defined approval criteria is as follows:
Added on 24 March 202024 March 2020.
2.4
It is strongly recommended that the Trading Member should have in place:
Added on 24 March 202024 March 2020.