CASS 7.7 Statutory trust

A firm receives and holds client money as trustee (or in Scotland as agent) on the following terms:

1. (1)

   for the purposes of and on the terms of the client money rules and the client money distribution rules;

   1
2. (2)

   subject to (3), for the clients (other than clients which are insurance undertakings when acting as such with respect of client money received in the course of insurance mediation activity and that was opted in to this chapter) for whom that money is held, according to their respective interests in it;

3. (3)

   after all valid claims in (2) have been met, for clients which are insurance undertakings with respect of client money received in the course of insurance mediation activity according to their respective interests in it;

4. (4)

   on failure of the firm, for the payment of the costs properly attributable to the distribution of the client money in accordance with (2); and

5. (5)

   after all valid claims and costs under (2) to (4) have been met, for the firm itself.

1A trustee firm which is subject to the client money rules by virtue of CASS 7.1.1 R (4)CASS 7.1.1A R (2):

1. (1)

   must receive and hold client money in accordance with the relevant instrument of trust;

2. (2)

   subject to that, receives and holds client money on trust on the terms (or in Scotland on the agency terms) specified in CASS 7.7.2 R.