The banking exemption - CASS Provision: Difference between revisions

The banking exemption - CASS Provision (view source)

1,040 bytes added , 27 November 2019

no edit summary

82,465

edits

@@ Line 1: / Line 1: @@
 {{cassanat|7|10|16}}
 '''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?===
 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.