COBS 14.2.15 Statutory Trusts

(a) An Authorised Person receives and holds Client Money or Relevant Money, as applicable, as trustee in accordance with the following requirements.
(b) The requirements in (a) are:
(i) for the purposes of and on the terms of the Client Money rules and the Client Money Distribution Rules;
(A) where an Authorised Person maintains only a single Statutory Trust as a general pool of Client Money or Relevant Money, as applicable, subject to (ii), for the Clients or Payment Service Users for whom that money is held, according to their respective interests in it;
(B) where an Authorised Person has established one or more separate Statutory Trusts of Client Money, subject to (ii), each separate Statutory Trust is held for the Clients of the Authorised Person who are beneficiaries of that specific Statutory Trust according to their respective interests in it;
(ii) for the payment of the costs properly attributable to the distribution of the Client Money or Relevant Money, as applicable, in accordance with (i), if such distribution takes place following the Failure of the Authorised Person; and
(iii) after all valid claims and costs under (i) to (ii) have been met, for the Authorised Person itself.
(c) In respect of Authorised Persons conducting Investment Business, the beneficiaries of each separate Statutory Trust are those Clients:
(i) to whom the Authorised Person has delivered a Statutory Trust disclosure document under Rule 14.2.14(e);
(ii) for whom the Authorised Person maintains, previously maintained or is in the process of establishing a margined transaction(s) in the relevant Client Account at the relevant Recognised Clearing House;
(iii) who are interested in a Designated Client Fund Account or Designated Client Account; or
(iv) to whom any Client Equity Balance or other Client Money is required to be segregated for the Client by the Authorised Person in respect of the margined transactions under (ii) from that separate Statutory Trust.
(d) An Authorised Person which is subject to the Client Money Rules receives and holds Client Money or Relevant Money, as applicable, as trustee on the terms in Rule 14.2.14(d), subject to its obligations to hold Client Money as trustee.