FCA Handbook - CASS 13.4 Selecting an approved bank at which to hold client money

You are viewing CASS 13.4 Selecting an approved bank at which to hold client money as of . CASS 13.4 Selecting an approved bank at which to hold client money was last updated on 01/04/2019.

Guidance

Rules

Related resources

CASS 13.4 Selecting an approved bank at which to hold client money

A firm owes a duty of care as a trustee to its clients in relation to client money and has to exercise that duty of care in deciding where to hold client money.

Before a firm opens a client bank account and as often as is appropriate on a continuing basis (such frequency being no less than once in each financial year) it must take reasonable steps to establish that it is appropriate for the firm to hold client money at the approved bank concerned.

A firm must consider the risks associated with holding all client money with one approved bank and should consider whether it would be appropriate to hold client money in client bank accounts at a number of different approved banks.

In complying with CASS 13.4.3R, a firm should consider as appropriate, together with any other relevant matters:

(1)
the amount of client money held by the firm;
(2)
the amount of client money the firm anticipates holding at the approved bank; and
(3)
the creditworthiness of the approved bank.

A firm can demonstrate compliance with CASS 13.4.2R by checking that the person it proposes to hold client money with is an approved bank and that nothing has come to the firm’s attention to cause it to believe that such person is not an appropriate place at which to hold client money.