Disclosure required where held under banking exemption - CASS Provision: Difference between revisions

Disclosure required where held under banking exemption - CASS Provision (view source)

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-{{cassp|7.10.19}}
+{{cassanat|7|10.19}}
+The rule that requires a bank which is providing [[Designated investment - CASS Provision|designated investment business]] to a client to notify it, '' before providing designated investment business services to the client in respect of those sums'' that the money the bank holds for them ''in respect of those sums'' is held as [[banker]] and not as [[trustee]], and that the [[client money distribution rules]] will not apply should the bank fail.
+Fun fact: if you ''don’t'' provide designated investment services, you don’t have to make this disclosure. Therefore Monzo, which just operates as an ordinary old bank with a Part 4A permission to accept [[deposits]] as contemplated in Article 5 of the [[Regulated Activities Order]] promulgated under the [[Financial Services and Markets Act 2000]], doesn't need to.  It is only when you are accepting [[deposits]] which would, if they were not held in connection with [[designated investment business]], be regulated deposits but in fact are not, because they ''are'' held in connection with [[designated investment business]]. So you have to tell people you are acting as banker when, strictly speaking, you’re not.
+Anyway, hope that is all clear.
+{{sa}}
+[https://monzo.com/legal/terms-and-conditions/ Monzo Terms and conditions].