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Status: You are viewing the version of the handbook as on 2019-12-18.

CASS 13.7 Money due and payable to the firm

CASS 13.7.1R

1Money is not client money when it is or becomes properly due and payable to the firm for its own account.

CASS 13.7.2G
  1. (1)

    1The circumstances in which money may be or become due and payable to the firm for its own account could include:

    1. (a)

      when fees and/or third party disbursements have become due and payable to the firm for its own account under the agreement between the customer and the firm; and

    2. (b)

      when money recovered for a customer or a sum in respect of damages, compensation or settlement of a claim is paid into a client bank account and the firm has agreed with the client that a proportion of the sum is to be paid to the firm for fees or in respect of liabilities the firm has incurred on behalf of the customer.

  2. (2)

    The circumstances in which money is due and payable will depend on the contractual arrangement between the firm and the client.

CASS 13.7.3G

1Firms are reminded that when entering into or varying contractual arrangements with customers regarding circumstances in which money becomes properly due and payable to the firm for its own account, firms should comply with any relevant obligations to customers including the client’s best interests rule and requirements under the Unfair Terms Regulations and the Consumer Rights Act 2015.