• IMEB Part 3.1 IMEB Part 3.1 Client money — general

    • IMEB 3.1.1 Application — chapter 3

      (1) This chapter applies to a firm if—
      (a) the firm is an insurance intermediary with an authorisation that permits it to conduct only insurance mediation, or only insurance mediation and captive insurance management, and no other business that is or includes a regulated activity; and
      (b) the firm holds client money.
      (2) However, this chapter does not apply in so far as insurance mediation relates to reinsurance contracts.

      Note 1 Insurance intermediary is defined in rule 1.2.1 and insurance mediation is defined in rule 1.2.2. Authorisation, regulated activity and reinsurance contract are defined in the glossary. Client money is defined in rule 1.2.9.

      Note 2 This chapter does not apply to certain firms (see chapter 5).

      Note 3 Any insurance intermediary to which this chapter does not apply should refer to INMA for how to deal with client money in general.
      Amended by QFCRA RM/2014-3 (as from 1st January 2015)

    • IMEB 3.1.2 IMEB 3.1.2 What is a client bank account?

      (1) A client bank account of a firm is a bank account maintained by the firm with an eligible bank as a bank account for client money received from 1 or more of the firm's clients.

      Note Certain firms are not allowed to hold client money (see chapter 5).
      (2) A client bank account of an eligible intermediary is a bank account maintained by the eligible intermediary with an eligible bank as a bank account for client money received from a producing intermediary or other eligible intermediary as part of a transfer or series of transfers under part 3.7 (Transfer of client money to eligible intermediaries).

      Note Eligible bank, eligible intermediary, producing intermediary and client are defined in the glossary.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

      • IMEB 3.1.2 Guidance

        A client bank account (whether of a firm or of an eligible intermediary) may contain client money of a number of clients.

        Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 3.1.3 Firms must open client bank account

      Each firm must open 1 or more client bank accounts before it receives client money.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 3.1.4 Client bank account requirements

      A client bank account of a firm must—

      (a) be a current or deposit account in an eligible bank in the name of the firm that maintains the account; and
      (b) have the words 'client bank account' in the name of the account; and
      (c) must otherwise have a name that sufficiently distinguishes it from any other account holding money belonging to the firm.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 3.1.5 Requirements before firm can pay client money into client bank accounts

      (1) A firm must not pay, or permit to be paid, client money into its client bank account unless—
      (a) under the law applying to the money and the bank account, the money will be taken to be segregated from, and will not form part of, the firm's assets in its insolvency; and
      (b) after conducting an appropriate assessment, the firm is satisfied, on reasonable grounds, that the eligible bank is a suitable person to hold the money in the account; and
      (c) the firm has received the confirmation in rule 3.1.6 (1).
      (2) In making an assessment about the suitability of an eligible bank, the firm must have regard to all relevant circumstances, including—
      (a) the bank's credit rating, capital and financial resources; and
      (b) the regulatory and insolvency regimes of the jurisdiction in which the bank is located; and
      (c) the bank's reputation; and
      (d) the bank's regulatory status and history.

      Note Eligible bank and jurisdiction are defined in the glossary.
      (3) A firm must not pay, or permit to be paid, client money into a client bank account of an eligible intermediary unless the firm has received from the eligible intermediary the confirmation in rule 3.1.6 (2).
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 3.1.6 Confirmation regarding client bank account

      (1) For a client bank account of a firm, the confirmation must be given to the firm by the eligible bank in writing and must state—
      (a) that all money standing to the credit of the account is held by the firm as trustee; and
      (b) that the bank is not entitled—
      (i) to combine the account with any other account; or
      (ii) to exercise any right of set-off or counterclaim or any security interest against money in the account for any debt or other obligation owed to it on any other account of the firm; and
      (c) that the name of the account includes the words 'client bank account' and sufficiently distinguishes it from any other account holding money belonging to the firm.
      (2) For a client bank account of an eligible intermediary, the confirmation must have been received in writing by the firm from the eligible intermediary and must state—
      (a) that any client money transferred to the eligible intermediary will be segregated in the client bank account; and
      (b) that the eligible intermediary has conducted an assessment as described in rule 3.1.5 (2) and is satisfied, on reasonable grounds, that the eligible bank is a suitable person to hold the money in the account; and
      (c) that all money standing to the credit of the account is held by the eligible intermediary as trustee; and
      (d) that the bank with which the account is maintained has accepted that it is not entitled—
      (i) to combine the account with any other account; or
      (ii) to exercise any right of set-off or counterclaim or any security interest against money in the account for any debt or other obligation owed to it on any other account of the eligible intermediary; and
      (e) that the name of the account includes the words 'client bank account' and sufficiently distinguishes it from any other account holding money belonging to the eligible intermediary.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 3.1.7 Approved representative — definition

      (1) An individual who is not an employee of a firm is an approved representative of the firm if:
      (a) he or she is authorised under a contract (approved representative contract) with the firm to perform that function for the firm in or from the QFC;
      (b) he or she has been assessed by the firm as meeting the requirements in INDI, rule 4.1.1 to perform the customer-facing function; and
      (c) the firm has agreed in the approved representative contract to accept responsibility for his or her every act or omission in performing (or purporting to perform) that function for the firm.
      (2) A firm must not enter into an approved representative contract with an individual if the individual is a party to an approved representative contract in force with another authorised firm.
      Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

    • IMEB 3.1.8 Non-QFC intermediary — definition

      (1) A body corporate is a non-QFC intermediary of a firm if:
      (a) the body corporate is authorised under a contract (non-QFC intermediary contract) with the firm to act as an intermediary for the firm in the State outside the QFC; and
      (b) the firm has agreed in the non-QFC intermediary contract to accept liability to the client for every act or omission of the body corporate directly applicable to the activity that the body corporate undertakes (or purports to undertake) as an intermediary for the firm in the State outside the QFC.
      (2) A firm must not enter into a non-QFC intermediary contract with a body corporate unless:
      (a) it is lawful for the body corporate to act as its intermediary in the State outside the QFC; and
      (b) every law, rule or regulation of the State applying in relation to the entering into of the contract is complied with.
      Inserted by QFCRA RM/2019-4 (as from 1st January 2020).