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Client Money Acknowledgment Letter - CASS Provision: Difference between revisions
Client Money Acknowledgment Letter - CASS Provision (view source)
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*To agree that moneys in the account are only payable to the CASS firm as trustee, and that the subcustodian has no recourse to that money for claims owed by the {{cassprov|CASS firm}}. | *To agree that moneys in the account are only payable to the CASS firm as trustee, and that the subcustodian has no recourse to that money for claims owed by the {{cassprov|CASS firm}}. | ||
Note this is a different thing from the requirement a custodian has no security interest over client assets under CASS {{cassprov|6.3.5}} and {{cassprov|6.3.6}}. | Note this is a different thing from the requirement a custodian has no security interest over {{cassprov|client assets}} under CASS {{cassprov|6.3.5}} and {{cassprov|6.3.6}}. That doesn't require a letter per se, though there are those in the {{cassprov|CASS firm}} community who like to get one nonetheless. Because, why not add another useless piece of paper to the stack and increase your operational burden for no good reason. | ||
Anyway, it goes something like this: | Anyway, it goes something like this: | ||
{{box| | {{box| | ||
===[[Client Money Acknowledgment Letter]]=== | ===[[Client Money Acknowledgment Letter - CASS Provision|Client Money Acknowledgment Letter]]=== | ||
We refer to the following transaction accounts which [name of CASS firm], regulated by the [[Financial Conduct Authority]] (Firm Reference Number [FRN]), (“'''us'''”, “'''we'''” or “'''our'''”) has opened or will open with [name of counterparty] (“'''you'''” or “'''your'''”): ''[insert the account titles, the account unique identifiers (for example, as relevant, account number, reference code or pool ID) and (if applicable) any abbreviated names of the accounts as reflected in the counterparty’s systems]'' (collectively, the “'''{{cassprov|Client Transaction Account}}s'''“). | We refer to the following transaction accounts which [name of CASS firm], regulated by the [[Financial Conduct Authority]] (Firm Reference Number [FRN]), (“'''us'''”, “'''we'''” or “'''our'''”) has opened or will open with [name of counterparty] (“'''you'''” or “'''your'''”): ''[insert the account titles, the account unique identifiers (for example, as relevant, account number, reference code or pool ID) and (if applicable) any abbreviated names of the accounts as reflected in the counterparty’s systems]'' (collectively, the “'''{{cassprov|Client Transaction Account}}s'''“). | ||
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Please sign and return the enclosed copy of this letter as soon as possible. We remind you that, pursuant to the rules of the Financial Conduct Authority, we are not allowed to permit you to hold any money belonging to our clients on the {{cassprov|Client Transaction Account}} until you have acknowledged and agreed to the terms of this letter. | Please sign and return the enclosed copy of this letter as soon as possible. We remind you that, pursuant to the rules of the Financial Conduct Authority, we are not allowed to permit you to hold any money belonging to our clients on the {{cassprov|Client Transaction Account}} until you have acknowledged and agreed to the terms of this letter. | ||
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