COBS 14.2.4 Payment of Client Money into Client Accounts

Past version: effective from 21/10/2015 - 20/10/2015
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(a) Where an Authorised Person holds or controls Client Money it must ensure, except where otherwise provided in these Rules that the Client Money is paid into one or more Client Accounts within one day of receipt.
(b) An Authorised Person must not hold or deposit its own Money into a Client Account, except where:
(i) it is a minimum sum required to open the account, or to keep it open;
(ii) the Money is received by way of mixed remittance, provided the Authorised Person transfers out that part of the payment which is not Client Money within one day of the day on which the Authorised Person would normally expect the remittance to be cleared;
(iii) interest credited to the account exceeds the amount payable to Clients, provided that the Money is removed within thirty days; or
(iv) it is to meet a shortfall in Client Money.
(c) Where an Authorised Person deposits any Money into a Client Account, such Money is Client Money until such time as the Money is withdrawn from the Client Account in accordance with the Client Money Rules.
(d) An Authorised Person must maintain systems and controls for identifying Money which must not be in a Client Account and for transferring it out of the Client Account without delay.
(e) Where an Authorised Person is aware that a Person may make a payment of Client Money to the Authorised Person, it must take reasonable steps:
(i) to ensure that the Person has sufficient information of the relevant account details to be able to transfer Client Money directly to a Client Account, or otherwise to enable the Authorised Person to identify the Client Money; and
(ii) to ensure that the Authorised Person is notified by that Person of such payment as soon as reasonably practicable.
(f) An Authorised Person must have procedures for identifying Client Money received by the Authorised Person, and for promptly recording the receipt of the Money either in the books of account or a register for later posting to and recording in the Client Account. The procedures must cover Client Money received by the Authorised Person through the mail, electronically or via agents of the Authorised Person or through any other means.