Related provisions for CASS 5.5.62
1 - 11 of 11 items.
Where an insurance transaction
involves more than one firm acting
in a chain such that for example money is
transferred from a "producing" broker who has received client money from a consumer5 to an intermediate broker and thereafter to an insurance
undertaking, each broker firm will
owe obligations to its immediate client to
segregate client money which
it receives (in this example the producing broker in relation to the consumer5and the intermediate broker in relation to the
(1) As
soon as commission becomes due
to the firm (in accordance with CASS
5.5.16 R (1)) it must be treated as a remittance which must be withdrawn in
accordance with CASS
5.5.16 R (2). 2The procedure required by CASS 5.5.16 R will also 2apply where moneyis 2due and payable 2to the firm in
respect of fees due from clients (whether to the firm or
other professionals).(2) Firms are reminded that money received
in accordance with CASS
5.2 must not,
except where a firm and an insurance
(1) CASS 5.5.23 R allows a firm with appointed representatives, field representatives and other agents to
avoid the need for the representative to
forward client money on a daily
basis but instead requires a firm to
segregate into its client money bank account amounts
which it reasonably estimates to be sufficient to cover the amount of client money which the firm expects
its representatives or agents
to receive and hold over a given period. At the expiry of each such period,
the
The records maintained under this section, including the sub-pool disclosure documents, are a record of the firm that must be kept in a durable medium for at least five years following the date on which client money was last held by the firm for a sub-pool to which those records or the sub-pool disclosure document applied.
(1) Principle 10 (Clients' assets) requires a firm to arrange adequate protection for clients' assets when the firm is
responsible for them. An essential part of that protection is the proper accounting
and handling of client money.
The rules in CASS 5.1 to CASS
5.6 also give effect to the requirement in article 4.4 of the Insurance
Mediation Directive5 that all necessary measures should
be taken to protect clients against
the inability of an insurance intermediary to
transfer
(1) Subject to (2) and CASS 6.1.12B R and with the written agreement of the relevant client, a9firm need not treat this chapter as applying in respect of a delivery versus payment transaction through a commercial settlement system if:9929(a) in respect of a client's purchase, the firm intends for the asset in question to be due to the client within one business day following the client's fulfilment of its payment obligation to the firm;9 or9(b) in respect of a client's sale, the
(1) A
firm which holds client money can discharge its obligation
to ensure adequate protection for its clients in
respect of such money by complying
with CASS
5.3 which provides for such money to
be held by the firm on the terms
of a trust imposed by the rules.(2) The
trust imposed by CASS
5.3 is limited to a trust in respect of client money which a firm receives
and holds. The consequential and supplementary requirements in CASS
5.5 are
designed to secure the proper segregation