Secondary pooling event

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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 This resource therefore may well be out of date, even if it was accurate once, which it might not have been.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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In the world of the FCA’s CASS 7 client money rules, a secondary pooling event happens when one of the client money banks - or intermediaries in a clearing chain who has offered client money protection fails or goes bust. This means there is likely to be a shortfall on the client money balance which will be shared across the clients pro rata according to their claim.


See also