TTCAs’ Risks and Consequences Clause Samples

TTCAs’ Risks and Consequences. 16.16.1. The Company highlights to the Client the risks involved and the effect of any TTCA on your financial instruments and/or funds. 16.16.2. Where you provide financial instruments to the Company under a TTCA: any proprietary or other rights that you had in those financial instruments will be replaced by an unsecured contractual claim for delivery of equivalent financial instruments subject to the terms of the relevant TTCA; such financial instruments will not be held by the Company in accordance with client asset rules, and, if they had benefited from any client asset protection rights, those protection rights will not apply (for example, the financial instruments will not be segregated from our assets or held subject to a trust); in the event of our insolvency or default under the relevant agreement your claim against the Company for delivery of equivalent financial instruments will not be secured and will be subject to the terms of the relevant TTCA and applicable law and, accordingly, you may not receive such equivalent financial instruments or recover the full value of the financial instruments (although your exposure may be reduced to the extent that you have liabilities to us which can be set off or netted against or discharged by reference to our obligation to deliver equivalent financial instruments to you) in the event that a resolution authority exercises its powers under any relevant resolution regime in relation to us any rights you may have to take any action against us, such as to terminate our agreement, may be subject to a stay by the relevant resolution authority and: your claim for delivery of equivalent financial instruments may be reduced (in part or in full) or converted into equity; or a transfer of assets or liabilities may result in your claim on us, or our claim on you, being transferred to different entities although you may be protected to the extent that the exercise of resolution powers is restricted by the availability of set-off or netting rights; you will not be entitled to exercise any voting, consent or similar rights attached to the financial instruments, and even if we have agreed to exercise voting, consent or similar rights attached to any equivalent financial instruments in accordance with your instructions or the relevant TTCA entitles you to notify us that the equivalent financial instruments to be delivered by us to you should reflect your instructions with respect to the subject matter of such vote, consent o...