CASS 7.7 Statutory trust

Subject to CASS 7.7.3 R in respect of a trustee firm, a3 firm receives and holds client money as trustee 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) 3
   1. (a)

      where a firm maintains only a general pool of client money, subject to (4), for the clients (other than clients which are insurance undertakings when acting as such with respect to 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

   2. (b)

      where a firm has established one or more pools of client money, subject to (4):3

      1. (i)

         the general pool is held for all the clients of the firm for whom the firm holds client money (other than clients which are insurance undertakings when acting as such with respect to client money received in the course of insurance mediation activity and that was opted in to this chapter) according to their respective interests in it; and3

      2. (ii)

         each sub-pool is for the clients of the firm who are beneficiaries of the sub-pool in question accordance with CASS 7.19.6 R (2), according to their respective interests in it;3

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)

   for the payment of the costs properly attributable to the distribution of the client money in accordance with (2) if such distribution takes place following the failure of the firm3; and

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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) receives and holds client money as trustee on the terms in CASS 7.7.2 R, subject to its obligations to hold client money as trustee under the relevant instrument of trust.3