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Template:M intro banking deposit: Difference between revisions
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===Who can take [[deposit]]s?=== | ===Who can take [[deposit]]s?=== | ||
Only regulated [[credit institution|credit institutions]] — [[banks]], in the vernacular — are allowed to accept [[deposit]]s | This is laid down by Article 5 of the [[Financial Services and Markets Act 2000]] Regulated Activities Order 2001, which describes the regulated activity of accepting deposits. Only regulated [[credit institution|credit institutions]] — [[banks]], in the vernacular — are allowed to accept [[deposit]]s. | ||
==Miscellanea== | |||
===Limitation Act 1980=== | ===Limitation Act 1980=== | ||
This gives a (demand) bank deposit special status under the [[Limitation Act 1980]], since it is not payable at any time, unless it is asked for, so the [[limitation period]] never begins to run. | This gives a (demand) bank deposit special status under the [[Limitation Act 1980]], since it is not payable at any time, unless it is asked for, so the [[limitation period]] never begins to run. | ||
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===Is this the same as [[client money]]?=== | ===Is this the same as [[client money]]?=== | ||
Yes - and no. With [[client money]], the person to whom you pay the money doesn’t ever hold it, but merely looks after it for you by depositing it in their name but on your behalf in a [[bank]] somewhere else. ''That'' bank is therefore the borrower. You are still the [[lender]]. More particularly, [[CASS 7]] [[client money]] applies only where you hold a money for or on behalf of a client in connection with [[MiFID business - FCA Rulebook Term|MiFID business]] or [[Designated investment business - FCA Rulebook Term|designated investment business]]. So it is a limited case. | Yes - and no. With [[client money]], the person to whom you pay the money doesn’t ever hold it, but merely looks after it for you by depositing it in their name but on your behalf in a [[bank]] somewhere else. ''That'' bank is therefore the borrower. You are still the [[lender]]. More particularly, [[CASS 7]] [[client money]] applies only where you hold a money for or on behalf of a client in connection with [[MiFID business - FCA Rulebook Term|MiFID business]] or [[Designated investment business - FCA Rulebook Term|designated investment business]]. So it is a limited case. | ||
===Retail deposits and [[cross default]]=== | |||
Just note that the thought of retail deposits being gummed up due to operational snafus and local insurrections in far flung places can give certain banks a nosebleed when it comes to contemplating their liabilities under a cross default clause. You should expect that they will be carved out. More at {{isdaprov|Cross Default}}. | |||