INMA 5.10.7 Firms may make good deficit
(1) If an investment business firm is not responsible for a deficit in client money that arose as a result of, or in connection with, a third-party-related distribution event, rule 5.10.6 does not prevent the firm from choosing to make good the deficit.
(2) If the firm chooses not to make good the deficit:
(a) the deficit must be borne by customers who have valid claims against the firm for client money owed to them by the firm, in proportion to the respective value of their claims; and
(b) the firm must promptly notify each affected customer in writing of the amount of the deficit and the customer's share in it.
(3) As soon as is practicable after the deficit is known, the firm must make and retain a record of each customer's share in the deficit.
|Derived from QFCRA RM/2014-4 (as from 1st January 2015).|