Client money: Difference between revisions

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 ===[[Bank|Banks]]===
-Approved [[Bank|banks]] do not have to offer [[client money]] protection – they have a specific exemption from doing so in the CASS rules (CASS {{cassprov|7.10.16}} - {{Cassprov|7.10.19}} since you are asking) — but may do so if they wish. But they may well find it is quite painful and difficult to do, seeing as the one thing banks like to do most — that is, taking cash in and onto their balance sheet — is the one thing<ref>Well, all right, it is one of the ''thousands of things'' a client money provider may not do.</ref> a provider of client money protection may ''not'' do.
+Deposit-taking credit institutions and “approved [[Bank|banks]]” benefit from the general “{{cassprov|banking exemption}}” and do not have to offer [[client money]] protection –
+ see CASS {{cassprov|7.10.16}} - {{Cassprov|7.10.19}}  — but may do so if they wish, or their clients insist.
+But they may well find it is quite painful and difficult to do, seeing as the one thing banks like to do most — that is, taking cash in and onto their balance sheet — is the one thing<ref>Well, all right, it is one of the ''thousands of things'' a client money provider may not do.</ref> a provider of client money protection may ''not'' do.
+That won’t stop certain [[ETD]] clients — especially [[UCITS]] funds who can’t have credit exposure to single entities, not even [[bank|banks]] — insisting that their [[initial margin]] is held as [[client money]] and thereby diversified.
 ===When do client money obligations arise?===