Compliance check of inbound instructions
Effective
8 December 2014
LuxCSD1 will introduce an enhanced compliance check on all instructions received from customers. If a particular instruction is subject to scrutiny, the processing of the instruction may be interrupted. To keep customers informed about the status of their instructions, the preliminary status IPRC//PPRC will be reported in the MT5482 messages to LuxCSD customers.
Customers are reminded that it is market practice to send instructions as early as possible, ideally on trade date or no later than trade date plus one business day. In addition, we would like to remind customers of their general obligation not to send instructions to LuxCSD that could be questionable from a compliance perspective.
Important note
LuxCSD reserves the right not to execute an instruction if such instruction is contravening or may contravene any Act, directly or indirectly applicable, to a Covered Person, a Covered Asset or the services requested by the customer, performed or to be performed for the customer or on the customer's behalf, by LuxCSD.
LuxCSD shall not be obligated to execute any customer instruction as long as the reasons which have led LuxCSD to refuse executing an instruction of the customer are still ongoing in LuxCSD's opinion, including after termination of the provision of the services to the customer.
If LuxCSD refuses to execute an instruction of the customer, whether the customer challenges LuxCSD's action or not, LuxCSD shall not be liable to the customer.
For the purposes of this announcement, the following terms shall have the following meanings:
Act refers to any national or foreign laws, decrees, regulations, judicial or governmental orders (including, but not limited to, any sanction rules and any orders, writs, judgements, injunctions, decrees, stipulations, determinations, awards or other acts entered or actions taken by any national or foreign government, authority, court, (self-)regulatory organisation, government agency or instrumentality of government, administrative practices or any relevant market practice.
Covered Person refers to a customer (as defined in LuxCSD's general terms and conditions), client of the customer, beneficial owner of a covered asset, LuxCSD or any of its affiliates, or any sub-custodian.
Covered Asset refers to the securities (as defined in LuxCSD's general terms and conditions), funds or precious metals held by LuxCSD or any sub-custodian on behalf of a customer.
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1. This Announcement is published by LuxCSD, registered office at 42, avenue JF Kennedy, L-1855 Luxembourg, Luxembourg, registered with the Trade and Company Register of Luxembourg, under number B. 154 449.
2. ISO 15022 terminology is used as a standard for descriptions of message types. MTxxx applies to CreationOnline, CreationDirect and Creation via SWIFT as appropriate.