• IMEB Chapter 5 IMEB Chapter 5 Restrictions on holding client money

    • IMEB 5.1.1 Certain firms must not hold client money

      (1) A firm must not hold client money if—
      (a) its authorisation permits it to conduct only insurance mediation and is restricted to giving advice to other persons about the merits of entering into contracts of insurance, whether as principal or agent; or
      (b) its authorisation permits it to conduct only—
      (i) insurance mediation as mentioned in paragraph (a) and captive insurance management; or
      (ii) captive insurance management.
      Note Client money is defined in rule 1.2.9, insurance mediation is defined in rule 1.2.2 and captive insurance management is defined in rule 1.2.5. Authorisation is defined in the glossary.
      (2) If—
      (a) the firm receives any money from a client; and
      (b) the exception in rule 3.2.1 (Client money exception — money payable to firm) or rule 3.2.3 (Client money exception — certain cheques and payable orders) does not apply to the money;
      the firm must immediately return the money to the client.

      Note Money and client are defined in the glossary.
      (3) The firm must make, and keep—
      (a) a record of all money to which subrule (2) applies; and
      (b) for a cheque or other payable order — a copy of the cheque or other payable order.
      (4) The record must include the following details:
      (a) the client;
      (b) the date the money was received by the firm;
      (c) the date the money was returned to the client.
      Note For a firm's record keeping obligations, see chapter 8.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)