INMA 5.3.7 Money that is not client money — money for issue or redemption of units in QFC schemes

(1) Money received by an INMA firm or banking business firm (within the meaning given by BANK) that is the operator of a QFC scheme in a delivery-versus-payment transaction in relation to units in the scheme is not client money of the firm if:
(a) subject to subrule (2), the firm receives it from a customer in relation to the firm's obligation to issue the units; or
(b) the money is held in the course of redeeming the units and the proceeds of that redemption are paid to a customer within the time allowed by COLL to do so.
(2) If the price of the units has not been determined by the close of business on the next business day after the day on which the firm received the money from the customer (or, if the customer paid the money to an approved representative of the firm, the day on which the firm received the money from the representative), subrule (1) does not apply (and the firm must treat the money as client money).
(3) If the firm draws a cheque to pay the customer under subrule (1) (b) and the cheque is drawn within the time allowed by COLL for paying the customer, rule 5.7.1(3) (Payments to be in accordance with Part 5.7) does not apply.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).