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CASS Anatomy: Difference between revisions
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{{anat|cass}} | {{anat|cass}} | ||
===[[Client money]]=== | ===[[Client money]]=== | ||
Generally, there are two reasons you might pay money to someone else under a contract: | Generally, there are two reasons you might pay money to someone else under a contract: <br> | ||
'''The general case''': ''Because you are obliged to pay it to him under the contract.'' | |||
''Because you are obliged to pay it to him under the contract.'' | |||
*In some cases (for example a {{tag|CSA}} or even a [[loan]]) the payee might in turn have an obligation to pay some money back to you. But you are exposed to the payee's credit risk in the mean time: you are his '''creditor'''. | *In some cases (for example a {{tag|CSA}} or even a [[loan]]) the payee might in turn have an obligation to pay some money back to you. But you are exposed to the payee's credit risk in the mean time: you are his '''creditor'''. | ||
*This general case does not involve handling [[client money]] (see {{tag|CASS}} {{Cassprov|7.11.25}}). | *This general case does not involve handling [[client money]] (see {{tag|CASS}} {{Cassprov|7.11.25}}). | ||
*You could say this is “title transfer” of cash, but you don't need to, because cash is special: title to cash, by definition, passes by delivery. | *You could say this is “title transfer” of cash, but you don't need to, because cash is special: title to cash, by definition, passes by delivery. <br> | ||
'''The special case''': ''Because you want your counterparty to look after it for you under the contract.'' | |||
''Because you want your counterparty to look after it for you under the contract.'' | |||
*Here, you don't owe the payee anything, and the only contract you have arises because the counterparty has agreed to look after the money for you. | *Here, you don't owe the payee anything, and the only contract you have arises because the counterparty has agreed to look after the money for you. | ||
*This special case is a sort of safekeeping: it is a regulated activity. In the UK it is regulated by the {{tag|FCA}} under the [[Client Asset Sourcebook]] (fondly known as the {{tag|CASS}} rules). | *This special case is a sort of safekeeping: it is a regulated activity. In the UK it is regulated by the {{tag|FCA}} under the [[Client Asset Sourcebook]] (fondly known as the {{tag|CASS}} rules). | ||