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Client money: Difference between revisions
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{{a|cass|{{image|CASS Garb| | {{a|cass|{{image|CASS Garb|png|A [[CASS operational oversight function|CASS officer]]’s ceremonial [[mithril]] gown, yesterday.}} | ||
}}The [[FCA]]’s [[client money rules]] are designed to minimise credit exposure to firms which hold client funds, but who are not themselves regulated banks. Such firms must deposit client funds with an {{cassprov|approved bank}} which record the deposits in the firm’s name but belonging to the firm’s clients, so it is clear that the firm has no proprietary claim on the account. Therefore, the [[client money]] account is isolated the firm’s creditors on the firm’s insolvency (such a failure a “[[primary pooling event]]”). It is not isolated, however, from the [[client money bank]]’s creditors. | }}The [[FCA]]’s [[client money rules]] are designed to minimise credit exposure to firms which hold client funds, but who are not themselves regulated banks. Such firms must deposit client funds with an {{cassprov|approved bank}} which record the deposits in the firm’s name but belonging to the firm’s clients, so it is clear that the firm has no proprietary claim on the account. Therefore, the [[client money]] account is isolated the firm’s creditors on the firm’s insolvency (such a failure a “[[primary pooling event]]”). It is not isolated, however, from the [[client money bank]]’s creditors. | ||