• INMA Part 5.1 INMA Part 5.1 Client money — introductory

    • INMA 5.1.1 Introduction

      (1) This Chapter sets out the rules about which INMA firms can deal with customers' money in the course of carrying on business in relation to relevant investments. Only an investment business firm (defined in rule 5.1.2) is permitted to hold customers' money.

      Note Relevant investment is defined in the glossary.
      (2) The Chapter covers how such money must be safeguarded and accounted for, including what kinds of bank accounts the firm may establish or use, and what happens if the firm itself or another firm that holds customers' money becomes insolvent.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 5.1.2 Investment business firms and advisory firms

      (1) An investment business firm is an INMA firm whose authorisation permits it to conduct any 1 or more of the following regulated activities in or from the QFC:
      (a) dealing in investments as agent;
      (b) managing investments;
      (c) operating collective investment schemes;
      (d) providing custody services.
      (2) Any other INMA firm is an advisory firm.

      Note An advisory firm's authorisation would permit it to carry on 1 or more of the following regulated activities, and no other regulated activity:
      •   providing scheme administration
      •   arranging deals in investments
      •   arranging the provision of custody services
      •   arranging financing facilities
      •   advising on investments.
      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • INMA 5.1.3 Advisory firms not to hold client money

      An advisory firm must not hold client money.

      Note For what an advisory firm must do if it receives client money — see rule 5.4.1.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 5.1.4 Chapter 5 application to QFC schemes

      This Chapter does not apply to the independent entity of a QFC scheme that is not a private placement scheme, or to the operator of a QFC scheme that is a private placement scheme, in relation to safeguarding the scheme property.

      Note Independent entity, QFC scheme, private placement scheme, operator and scheme property are defined in the glossary.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).