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| In this way, the client account is isolated the firm’s creditors on the firm’s insolvency (such a failure a “[[primary pooling event]]”). | | In this way, the client account is isolated the firm’s creditors on the firm’s insolvency (such a failure a “[[primary pooling event]]”). |
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| ===[[Bank|Banks]]===
| | {{banks and client money}} |
| 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.
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| 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.
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| 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.
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| ===When do client money obligations arise?=== | | ===When do client money obligations arise?=== |