A firm must:
ensure that the bond is in the form prescribed by the FCA;
ensure that the bond is lodged with the trustee; and
be able at all times to show that the amount of the bond is sufficient to meet the requirements of (1).
Firms which hold client money or bonded investments for more than one client, may hold one bond to cover all of the clients concerned. The bonding requirements may be complied with by taking out a global bond. In firms with numerous offices compliance may be achieved in practice by calculating the requirement based on figures supplied by offices which is likely to be at least quarterly. These figures would need to be supplied and assessed soon after the end of each quarter.
To ensure the global cover is sufficient, this approach would require an estimated safety margin to be incorporated, to allow for changes in the amounts of client money, investments or assets held. An additional prudent measure would be to ensure that exceptional amounts of these assets are notified by branch offices so that the firm can check whether the safety margin can absorb them and reconsider whether the total global bond cover remains sufficient.