(a) A Secondary Pooling Event occurs on Failure of a third party to which Client Money held by the Authorised Person has been transferred under Rule 14.2.5(a) or Rule 14.2.9 and the Authorised Person has not repaid to its Clients or paid into a Client Account at an unaffected bank, an amount equivalent to the shortfall in the amount of Client Money held by the third party.

(b) The Authorised Person would be expected to reflect the shortfall in (a) in its records of the entitlement of Clients and of Client Money held with third parties under Rules 14.2.18, 14.3.6, and 14.3.7.