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)