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CASS Anatomy: Difference between revisions
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===When do client money obligations arise?=== | ===When do client money obligations arise?=== | ||
In a nutshell, when you give someone money ''apropos'' nothing in particular. | In a nutshell, when you give someone money ''apropos'' nothing in particular. Generally, there are two reasons you might pay money to someone else: <br> | ||
'''The general case''': ''Because you owe it under a contract.'' | '''The general case''': ''Because you owe it under a contract.'' | ||
*In some cases (for example a {{tag|CSA}} or even a [[loan]]) the payee might in turn have to pay some money back to you at a later date. But you are exposed to the payee’s credit risk in the mean time: you are a '''creditor'''. | *In some cases (for example a {{tag|CSA}} or even a [[loan]]) the payee might in turn have to pay some money back to you at a later date. But you are exposed to the payee’s credit risk in the mean time: you are a '''creditor'''. | ||
*This general case does '''not''' involve [[client money]] (see {{tag|CASS}} {{Cassprov|7.11.25}}). | *This general case does '''not''' involve [[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. <br> | *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, in connection with some other service it is providing you.'' | '''The special case''': ''Because you want your counterparty to look after it for you, in connection with some other service it is providing you.'' | ||
*Here, you don't owe the payee anything. The only contract you have arises because it has agreed to look after your money for you. | *Here, you don't owe the payee anything. The only contract you have arises because it has agreed to look after your money for you. | ||