INMA 5.3.5 Money that is not client money — money held in guaranteed account
(1) Money held in an account with an INMA firm itself is not client money of the firm if:
(a) all of the firm’s obligations to repay the money to the customer concerned (or to the customer’s order) have been fully, unconditionally and irrevocably guaranteed by an eligible bank; and
(b) the firm has complied with subrule (2).
(2) For subrule (1) (b), the firm:
(a) must notify the customer in writing that:
(i) the firm’s obligations to repay money belonging to the customer have been fully, unconditionally and irrevocably guaranteed by an eligible bank; and
(ii) such money is not subject to the client money protection rules; and
(b) must give the customer a copy of the guarantee from the bank.
(3) The notification required by paragraph (2) (a) may be in the firm’s terms of business.
|Derived from QFCRA RM/2014-4 (as from 1st January 2015).|