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Term
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Meaning
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“CF”
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Controlled Function.
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“Discrepancies”
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Any error in an investment firm’s records or accounts of client assets.
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“Excess” in client financial instruments
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A client financial instrument excess occurs when the client financial instrument resource exceeds the client financial instrument requirement.
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“Excess” in client funds
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A client fund excess occurs when the client funds resource exceeds the client funds requirement.
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“the MiFID ‘banking exemption”
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The exemption as set out paragraph 3(2) of Schedule 3 to the MiFID Regulations.
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“MiFID II”
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The MiFID II legislative package which includes Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU, MiFIR and all applicable Level 2 and Level 3 measures.
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“MiFID II Delegated Directive”
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Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits.
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“MiFID II Delegated Regulation”
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Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.
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“MiFID II safeguarding of client asset rules”
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The MiFID II rules on the safeguarding of client financial instruments and funds, as contained in Regulation 23 of the MiFID Regulations, Schedule 3 to the MiFID Regulations, as well as MiFID II.
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“MiFIR”
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Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012.
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“PCF”
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Pre-Approval Controlled Function.
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“Reconciliation differences”
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A difference between an investment firms’ internal client asset records and those records of either the third party with whom client assets are deposited or the entity that maintains the record of legal entitlement to client financial instruments, identified through the performance of a client asset reconciliation.
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“Shortfall” in client financial instruments
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A client financial instrument shortfall occurs when the client financial instrument resource is less than the client financial instrument requirement.
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“Shortfall” in client funds
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A client fund shortfall occurs client funds resource is less than the client funds requirement.
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