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{{cassanat|7|10|16}} | {{cassanat|7|10|16}} | ||
'''History''': This is a transliteration, verbatim, of the old CASS {{cassprov|7.1.8A}}. | '''History''': This is a transliteration, verbatim, of the old CASS {{cassprov|7.1.8A}}. | ||
===The mandatory notification=== | |||
If you intend to use the [[banking exemption]], you must first tell your client that | |||
*You are holding the money for that client as [[banker]] and not as a [[trustee]] under the [[client money rules]]; and | |||
*If you fail, the [[client money distribution and transfer rules]] will not apply to credit balances and so the client will not share in any distribution under those rules. | |||
The rule (CASS {{cassprov| 7.10.19}} doesn’t prescribe a particular form for that notification but expect [[legal eagles]] — or legal [[chicken lickens]] — to insist on the somewhat laborious text in that rule. | |||
Note: if you ''are'' providing [[client money]] protection, you are not obliged to tell clients that the [[client money distribution and transfer rules]] ''will'' apply. You can therefore let it be a nice surprise to them, when your bank has expectedly imploded and you are wandering around outside with your belongings in an [[Iron Mountain]] box. But your [[legal eagles]] might insist you tell them anyway. | |||
===And a “{{cobsprov|bank}}” is?=== | ===And a “{{cobsprov|bank}}” is?=== | ||
You’ll think it was easy, and — if you rise above the guff — it is: a bank is, well, a ''bank'': a regulated, officially permissioned<ref>In its own jurisdiction.</ref> deposit-taking institution. But of course it is too easy to just say that. | You’ll think it was easy, and — if you rise above the guff — it is: a bank is, well, a ''bank'': a regulated, officially permissioned<ref>In its own jurisdiction.</ref> deposit-taking institution. But of course it is too easy to just say that. |