INMA 5.5.10 Payment of client money into client bank accounts

(1) If an investment business firm holds client money it must ensure, unless this Part provides otherwise, that the money is paid into a client bank account as soon as possible and in any event within 1 business day after receipt.
(2) If the money is received by the firm in the form of an automated transfer, the firm must take reasonable steps to ensure that:
(a) the money is received directly into a client bank account; or
(b) if the money is received directly into the firm's own account, the money is transferred into a client bank account within 1 business day after receipt.
(3) If an investment business firm receives a mixed remittance (that is, one that is partly client money and partly other money), the firm:
(a) must pay the full sum into a client bank account in accordance with subrule (1); and
(b) must transfer that part of the payment that is not client money within 1 business day (in the jurisdiction in which the account is held) after the day on which it would normally expect the remittance to be cleared.
(4) An investment business firm must take reasonable steps to ensure that it is notified promptly if it receives client money in the form of client entitlements.

Examples of client entitlements

•   dividends
•   coupon payments
•   other distributions with similar characteristics.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).