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CASS Anatomy: Difference between revisions
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What is client money? | |||
===Banks=== | |||
Deposit-taking credit institutions benefit from the general “banking exemption” from the obligation to hold money on behalf of clients subject to the client money rules. A bank may hold cliient money as banker and not trustee. | |||
===[[Delivery versus payment]]=== | |||
Note that transactions that are settled [[DVP]] do not usually involve the holding money on a client's behalf at all: (instead the client would be paying the broker either as its contractual counterparty, where the broker acts as principal, or in settlement of the client's obligation to reimburse the broker for moneys it jhas already disbursed on the client's behalf (in acquiring the stock in the first place), where the broker acts as agent). | |||
Even without the general banking exemption, the obligation to hold fclient money only arises after a certain period (generally longer than the period for which a broker would expect to be holding money in case) | |||
There are specific exemptions from the obligation to hold as client money relating to delivery versus payment transactions. | |||
This is an anatomy of the {{tag|CASS}} Rules in the {{tag|FCA}} Sourcebook. | This is an anatomy of the {{tag|CASS}} Rules in the {{tag|FCA}} Sourcebook. | ||
{{CASS Section 1 TOC}} | {{CASS Section 1 TOC}} | ||