CASS 7.3 Organisational requirements: client money
Requirement to protect client money
A firm must, when holding client money, make adequate arrangements to safeguard the client's rights and prevent the use of client money for its own account.
[Note: article 13(8) of MiFID]
Requirement to have adequate organisational arrangements
A firm must introduce adequate organisational arrangements to minimise the risk of the loss or diminution of client money, or of rights in connection with client money, as a result of misuse of client money, fraud, poor administration, inadequate record-keeping or negligence.
[Note: article 16(1)(f) of the MiFID implementing Directive]1