Regulation 18D

must, before opening the trust account with the safeguarding person, assess, and satisfy itself of, the suitability of the safeguarding person with respect to the depositing of assets belonging to its customers in a trust account maintained with the safeguarding person;

must assess, and satisfy itself of, the suitability of the safeguarding person with which the trust account is maintained in which those assets are deposited, on an annual basis subsequent to the depositing of the assets;

must keep, for a period of at least 5 years, records of the grounds on which the licensee satisfied itself of the safeguarding person’s suitability under paragraphs (a) and (b);

must, before depositing those assets in the trust account, give written notice to the safeguarding person, and obtain an acknowledgment of the written notice from the safeguarding person, that —

all assets deposited in the trust account are held on trust by the licensee for its customer;

the trust account is designated as a trust account, or a customer’s or customers’ account, which is distinguishable and maintained separately from any other account maintained by the licensee with the safeguarding person in which the licensee deposits its own assets; and

the safeguarding person must not claim any lien, right of retention or sale over any assets in the trust account, except —

if the customer has consented in writing to the lien, right of retention or sale, and the licensee has notified the safeguarding person in writing of that written consent; or

if the customer and licensee have agreed to a charge relating to the safeguarding of the assets, and the lien, right of retention or sale is claimed over that charge; and

must, before depositing those assets in the trust account, disclose in writing to the customer —

the fact that the assets will be held by the licensee on behalf of the customer in a trust account maintained with a safeguarding person;

whether or not the assets will be deposited together with, and commingled with, assets belonging to other customers of the licensee or of the safeguarding person;

if the assets will be so deposited and commingled, the risks arising from the commingling;

the terms and conditions agreed with the safeguarding person that would apply to the safeguarding person’s safeguarding of the assets; and

the consequences for the customer in respect of the assets if the safeguarding person becomes insolvent.