82,451
edits
The banking exemption - CASS Provision: Difference between revisions
Jump to navigation
Jump to search
The banking exemption - CASS Provision (view source)
Revision as of 10:43, 27 November 2019
, 27 November 2019no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
{{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: it can be a nice surprise to them, when the bank for whom you work has unexpectedly imploded and you are wandering around outside with your belongings in an [[Iron Mountain]] box. (But your spoilsport [[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 | 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. | ||
So, for the purpose of figuring out whether your deposit ought to be protected under CASS client money rules, or whether you are free to not have to offer client money protection, you are deposit with a “CRD credit institution” or any money held by an “approved bank” that is not a CRD credit institution relating to designated investment business. An “approved bank” is (sigh) a {{cobsprov|bank}} ''or'' a CRD credit institution ''or'' a building society ''or'' a central bank yadayadayada — and a bank is an institution with Part 4 permissions to accept deposits in the UK. | So, for the purpose of figuring out whether your deposit ought to be protected under CASS client money rules, or whether you are free to not have to offer client money protection, you are deposit with a “CRD credit institution” or any money held by an “approved bank” that is not a CRD credit institution relating to designated investment business. An “approved bank” is (sigh) a {{cobsprov|bank}} ''or'' a CRD credit institution ''or'' a building society ''or'' a central bank yadayadayada — and a bank is an institution with Part 4 permissions to accept deposits in the UK. | ||
| Line 8: | Line 15: | ||
A {{cobsprov|CRD credit institution}} is an {{tag|EEA}} credit institution authorised under the {{t|CRD}}. | A {{cobsprov|CRD credit institution}} is an {{tag|EEA}} credit institution authorised under the {{t|CRD}}. | ||
{{client money and banks}} | |||
{{client money and cash brokerage}} | {{client money and cash brokerage}} | ||