Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

You are viewing the version of the document as on 2024-08-20.

collateral

  1. (1) (in COLL85 and FUND143) any form of security, guarantee or indemnity provided by way of security for the discharge of any liability arising from a transaction.
  2. (2) (in72COBS72 (except COBS 21.3)172 and CASS) any of the following:
    1. (a) an investment specified in articles 76 to 81 of the Regulated Activities Order; that is:
      1. (i) shares (article 76);
      2. (ii) debentures (article 77);
      3. (iia) an alternative debenture (article 77A);112
      4. (iii) government and public securities (article 78);
      5. (iv) warrants (article 79);
      6. (v) certificates representing certain securities (article 80);
      7. (vi) units (article 81); or
    2. (b) money; or
    3. (c) a commodity warrant (however title is recorded or evidenced);
    which belongs to a client and which is held or controlled by the firm under the terms of a deposit, pledge, charge or other security arrangement.
  3. (3) (in3162048INSPRU48 , COBS 21.3172 and SYSC47)34:34
    1. (a) (in relation to any transaction) a mortgage, charge, pledge or other security interest or, as the context may require, an asset that is subject to a mortgage, charge, pledge or other security interest; and34
    2. (b) (in relation to a stock lending, repo or derivative transaction only):34
      1. (i) a transfer of assets (other than by way of sale) subject to a right of the transferor to have transferred back to it the same, or equivalent, assets or, as the context may require, the assets so transferred by the original transferor; or34
      2. (ii) a letter of credit;34
      where the assets are transferred, or the letter of credit is issued, to secure the performance of the obligations of one of the parties to that transaction.34