(1) An investment firm shall not enter into arrangements for securities financing transactions in respect of financial instruments held by the firm on behalf of a client, or otherwise use such financial instruments for their own account or the account of another client of the firm, unless the following conditions are met:
(a) the client must have given prior express consent to the use of the instruments on specified terms, as evidenced, in the case of a retail client, by the client's signature;
(b) the use of the client's financial instruments must be restricted to the specified terms to which the client consents.
(2) Investment firms shall not -
(a) enter into arrangements for securities financing transactions in respect of financial instruments which are held on behalf of a client in an omnibus account, or
(b) otherwise use financial instruments held in such an account for their own account or for the account of another client,
unless, in addition to the conditions set out in pa