IMEB 3.2.3 Client money exception — certain cheques and payable orders

Client money of a firm does not include a cheque or other payable order that is—

(a) payable to a client by a third party; or
(b) payable to a third party by a client if it is received by the firm and forwarded to a regulated financial institution in accordance with the client's written instructions as soon as practicable (but no later than 2 business days after the day it is received by the firm).

Note 1 A firm must be able to show what cheques and other payable orders have been forwarded to regulated financial institutions in accordance with a client's instructions. For a firm's record keeping obligations, see chapter 8.

Note 2 Business day is defined in the glossary.

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