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    2021-09-01

CASS 13.9 Discharge of fiduciary duty

CASS 13.9.1G

1CASS 13 provides important safeguards for the protection of client money held by firms that sit alongside the fiduciary duty owed by firms in relation to client money. CASS 13.9.2R to 13.9.3R provide for when money ceases to be client money for the purposes of CASS 13 and the fiduciary duty which firms owe to clients in relation to client money.

CASS 13.9.2R

1Money ceases to be client money if:

  1. (1)

    it is paid to the customer, or a duly authorised representative of the customer; or

  2. (2)

    it is:

    1. (a)

      paid to a third party on the instruction of the customer, or with the specific consent of the customer; or

    2. (b)

      paid to a third party further to an obligation on the firm under any applicable law; or

  3. (3)

    it is paid into an account of the customer (not being an account which is also in the name of the firm) on the instruction, or with the specific consent, of the customer; or

  4. (4)

    it is due and payable to the firm for its own account (see CASS 13.7.1R to 13.7.2G); or

  5. (5)

    it is paid to the firm as an excess in the client bank account (see CASS 13.10.15R(3)).

CASS 13.9.3R

1When a firm draws a cheque or other payable order to discharge its fiduciary duty to the client, it must continue to treat the sum concerned as client money until the cheque or order is presented and paid.