IMEB 4.3.2 Firms may make good deficit

(1) A firm that, under rule 4.3.1, is not responsible for a deficit in client money arising as a result of, or in connection with, a third party-related distribution event may choose to make good the deficit.
(2) If a firm chooses not to make good a deficit under subrule (1)—
(a) the deficit must be borne by clients who have valid claims against the firm for money owed to them by the firm that is client money, in proportion to the respective value of their claims; and
(b) the amount of the deficit must be promptly notified in writing to each affected client, together with the client's share in the deficit.
(3) A firm must, as soon as is practicable after the deficit is known, make and keep records of each client's share in the deficit.

Note For a firm's record keeping obligations, see chapter 8.
Derived from QFCRA RM/2011-3 (as from 1st July 2011)