Client money: Difference between revisions

Client money (view source)

890 bytes removed , 26 November 2019

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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]]”).
-===[[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.
-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.
-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.
 ===When do client money obligations arise?===