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)