2. When reviewing and documenting the appropriate use of ownership transfer guarantee contracts, investment firms take into account all the following factors: (a) whether there is a very weak link between the client`s obligation to the business and the use of security contracts relating to the transfer of securities: including whether the likelihood of the client`s liability to the company is negligible; (b) if the amount of money from clients or financial instruments subject to a guarantee contract relating to transfers of ownership far exceeds the client`s obligation, or is unlimited, if the client is obliged; and (c) if the financial instruments or funds of all clients are subject to security agreements relating to the transfer of securities, regardless of each client`s commitment to the entity. 3. When applying security contracts relating to the transfer of securities, investment firms draw the attention of professional clients and eligible counterparties to the risks involved and the effects of a guarantee insurance agreement for Dener on the client`s financial instruments and funds. MiFID II prohibits the conclusion of hedging contracts with private clients (Article 16, paragraph 10, MiFID II). The ACF manual provides for a TTCA: “an agreement by which a client transfers full ownership of [money or secure custody] to a company to otherwise guarantee or cover current or future, actual, prospective or prospective obligations.” 1. Member States require investment firms to properly monitor the use of security agreements relating to the transfer of securities as part of the relationship between the client`s obligation to the investment firm and the client`s assets held by the securities transfer services, and that they can prove that they have done so. If you give us funds as part of a property guarantee agreement, or if we exercise a right of use for the funds you have made available to us under a guarantee contract with a right of use, we point out the following risks and consequences: this has profound consequences, perhaps a little shackles, if we consider the 2015/2365/CE (EUR Lex) (also known as the Regulation on transparency of securities financing transactions and reuse, rather casual than the rules for securities financing transactions and willingly as SFTR) which, in Article 15, have something to say about the securities transfer agreements and what you have to say to your counterparty. A guarantee contract providing that a debtor, instead of injecting a mortgage or security interest of any kind, provides the creditor with liquidity or financial guarantees by transfer of ownership against a possible obligation of the creditor to return an equivalent guarantee if the risk is settled. (8) While certain securities financing transactions may require the transfer of ownership of their clients` assets, investment firms should not be able to enter into agreements prohibited by Article 16, paragraph 10 of the 2014/65/EU Directive. Protecting client money and deposits is an ongoing priority for the CCF and, given the current COVID 19 pandemic and the increased risk of business failures or customer failures, this is a timely reminder for up-to-date and regular review of documentation and support processes.