IMEB 3.3.2 Fiduciary duties of firm

(1) The fiduciary duties of a firm over client money continue until the money ceases to be client money under rule 3.6.2 (Certain payments out of client bank account to discharge fiduciary duties).

Note Under rule 3.6.2 (1), client money that is paid out of a client bank account ceases to be client money if it is paid—
(a) to the insurer for the client; or
(b) to a client or a duly authorised representative of the client; or
(c) on the instructions, or with the consent, of a client (other than a transfer of client money in accordance with rule 3.7.1 (When client money may be transferred to eligible intermediary); or
(d) into a bank account in the client's own name (not being an account that is also in the name of the firm); or
(e) to the firm for the firm's own account under rule 3.2.1 (Client money exception-money payable to firm); or
(f) to the firm as surplus under rule 3.9.2 (b) (What to do if CM resource is not equal to CM requirement).
(2) To avoid doubt, the fiduciary duties of a firm over client money do not cease if the money is transferred to an eligible intermediary under rule 3.7.1.

Note To effect an insurance transaction for a client, a firm may, under rule 3.7.1, transfer, or permit to be transferred, to an eligible intermediary or a series of eligible intermediaries, client money belonging to the client.
Derived from QFCRA RM/2011-3 (as from 1st July 2011)