Related provisions for CASS 5.6.27
1 - 2 of 2 items.
When a bank fails and
the firm decides not to make
good the shortfall in the amount
of client money held at that
bank, a secondary pooling event will
occur in accordance with CASS 5.6.20 R. The firm would
be expected to reflect the shortfall that
arises at the firm's bank in
the periodic client money calculation
by reducing the client money resource
and client money requirement
accordingly.
If a secondary
pooling event occurs as a result of the failure of
a bank where one or more general client bank
accounts are held, then:(1) in
relation to every general client bank account of
the firm, the provisions of CASS 5.6.22 R and CASS 5.6.26 R to CASS 5.6.28 G will apply;(2) in
relation to every designated client bank account held
by the firm with the failed bank, the provisions of CASS 5.6.24 R and CASS 5.6.26 R to CASS 5.6.28 G will apply; and(3) any money held at a
Client
money received by the firm after
the failure of a bank, that
would otherwise have been paid into a client
bank account at that bank:(1) must
not be transferred to the failed bank
unless specifically instructed by the client in
order to settle an obligation of that client to
the failed bank; and(2) must
be, subject to (1), placed in a separate client
bank account that has been opened after the secondary
pooling event and either:(a) on
the written instruction of the client,
transferred