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CASS Anatomy: Difference between revisions
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{{anat|cass}} | {{anat|cass}} | ||
===[[Client money]]=== | ===[[Client money]]=== | ||
The FCA’s client money rules are designed to minimise client credit exposure to firms which deal in client funds, but which are not appropriately-permissioned (and regulated) to hold client funds themselves. Such firms must deposit client funds with an appropriately-permissioned entity, such as an [[approved bank]] which in turn must hold the funds in the firm’s name but designated for clients that firm, to make it clear that the firm has no proprietary claim on the account. In this way, funds in a client account are isolated from claims of creditors upon the failure of that firm (such a failure a “[[primary pooling event]]”. | |||
Firms who are approved banks do not have to offer client money protection – they have a specific exemption from doing so in the CASS rules – but may do so if they wish. | |||
Generally, there are two reasons you might pay money to someone else: <br> | Generally, there are two reasons you might pay money to someone else: <br> | ||
'''The general case''': ''Because you are obliged to, under a contract.'' | '''The general case''': ''Because you are obliged to, under a contract.'' | ||