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CASS 7A.1 Application and purpose

Application

CASS 7A.1.1R

1 Subject to CASS 7A.1.1A R, this2 chapter (the client money distribution and transfer rules4) applies to a firm that holds client money which is subject to the client money rules when a pooling event 2 occurs.

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CASS 7A.1.1AR
CASS 7A.1.1BG

2As a result of CASS 7A.1.1A R, the client money distribution and transfer rules4 relating to primary pooling events and secondary pooling events will not affect any client money held by a firm in its capacity as trustee firm. Instead, the treatment of that client money will be determined by the terms of the relevant instrument of trust or by applicable law. However, the client money distribution and transfer rules4 do apply to a firm for any client money that it holds other than in that capacity which is subject to the client money rules.

Purpose

CASS 7A.1.2G

The client money distribution and transfer rules set out the required treatment of client money on the occurrence of a pooling event so that where:4

  1. (1)

    for example, a firm fails (but also in other situations where a primary pooling event occurs), the rules in CASS 7A.2 (Primary pooling events) facilitate the return or transfer of client money; and4

  2. (2)

    a person at which the firm holds client money fails, the rules in CASS 7A.3 (Secondary pooling events) allocate any loss of client money among certain of the firm’s clients.4