INMA 5.7.2 Certain payments out of client bank account to discharge fiduciary duties

(1) Client money that is paid out of a client bank account ceases to be client money if it is paid:
(a) to a customer or the duly authorised representative of a customer;
(b) on the instructions, or with the consent, of a customer;
(c) into the customer's own account (not an account that is also in the name of the firm);
(d) to the firm for the firm's own account under rule 5.3.1 (Money that is not client money — money payable to firm); or
(e) to the firm as surplus under rule 5.9.2(b) (What to do if CM resource is less than or more than CM requirement).
(2) However, if client money is paid out of a client bank account by cheque, the money ceases to be client money after the cheque is presented to the customer's bank and cleared by the paying agent.

Note An investment business firm's fiduciary duties over client money cease if the money is paid in accordance with this rule (see rule 5.5.6 (1)).
Derived from QFCRA RM/2014-4 (as from 1st January 2015).