Qualifying money market fund - CASS Provision: Difference between revisions

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(Created page with "{{fullanat|cass|Qualifying money market fund|}} A money market fund that counts for {{tag|FCA}} purposes under the {{tag|CASS}} rules.")
 
 
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{{fullanat|cass|Qualifying money market fund|}}
{{anat|cass}}
A [[money market fund]] that counts for {{tag|FCA}} purposes under the {{tag|CASS}} rules.
A [[money market fund]] that counts as {{cassprov|client money}} for {{tag|FCA}} purposes under the {{tag|CASS}} rules. Defined the CASS rules [https://www.handbook.fca.org.uk/handbook/glossary/G2422.html here].
 
Relevant for {{tag|CASS}} see especially {{cassprov|7.13.26}} et. seq. In terms of suitability for being used as ballast where there's a {{cassprov|shortfall}} under {{cassprov|6.6.54}}R.
 
Not to be confused with an ordinary [[money market fund]] (whether or not it would—um—''qualify'' as a “qualifying” one), when it happens to be held in custody under the CASS {{cassprov|6}} [[custody]] rules. There is an important distrinction depending on you hold it. If you hold a money market fund as a qualifying money market fund under Cass {{cassprov|7}} it counts as {{cassprov|client money}} and is subject to [[Secondary pooling events - CASS Provision|secondary pooling rules]] in the client money pool. If you hold it as a normal [[safe custody]] asset under CASS {{cassprov|6}} it wont be loss-mutualised across forms of client money.

Latest revision as of 16:04, 8 November 2018

CASS Anatomy™

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IMPORTANT: CASS changed quite a bit after MiFID II. This resource therefore may well be out of date, even if it was accurate once, which it might not have been. This is an article about the FCA’s custody and client money rules — client assets — and is fondly known by its chapter in the FCA SourcebookTable of Contents | 1 | 1A | 3 | 5 | 6 (custody rules) | 7 (client money rules) | 7A | 8 | 9 (PBDA) | 10

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A money market fund that counts as client money for FCA purposes under the CASS rules. Defined the CASS rules here.

Relevant for CASS see especially 7.13.26 et. seq. In terms of suitability for being used as ballast where there's a shortfall under 6.6.54R.

Not to be confused with an ordinary money market fund (whether or not it would—um—qualify as a “qualifying” one), when it happens to be held in custody under the CASS 6 custody rules. There is an important distrinction depending on you hold it. If you hold a money market fund as a qualifying money market fund under Cass 7 it counts as client money and is subject to secondary pooling rules in the client money pool. If you hold it as a normal safe custody asset under CASS 6 it wont be loss-mutualised across forms of client money.

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