Compound Growth Ltd 2016 -
CLIENT MONEY WHAT IS IT?
The FCA Principle for Business 10 states: “A firm must arrange adequate protection for clients’ assets when it is responsible for them”. In this context, both client money and other custody assets, as well as safe custody investments, are included within client assets.
The FCA’s client money rules apply to all regulated firms that receive money from a client, or hold money for a client in the course of carrying out MiFiD business and/or designated investment business.
Client Money is money that a Firm holds or receives for or from a client and can be of any currency. This could be in the form of cash, draft, cheque or electronic transfer and includes money held by the Firm as stakeholder, and which is not immediately due or payable on demand to the Firm for its own account.
The definition of Client Money can be viewed here in the FCA Glossary: Client Money.
Firm that are within the scope of the Client Assets Sourcebook of the FCA (CASS) are known as CASS Firms.
Compound Growth can assist firms of all sizes to ensure they have the necessary procedures in place to remain compliant with the regulator’s rules pertaining to client money and client assets as set out in the CASS Sourcebook.
In particular we can support your firm in establishing suitable accounting systems as well as developing client money policies in line with industry best practice and the FCA’s guidance.