INMA 5.9.2 What to do if CM resource is less than or more than CM requirement

If an investment business firm's client money calculation shows that its CM resource is less than, or more than, its CM requirement, the firm must ensure that:

(a) if the CM resource is less than the CM requirement — the amount of that shortfall is paid into the client bank account to which it relates by the close of business on the day on which the shortfall is discovered; or

Note For an investment business firm's obligation to notify the Regulatory Authority if it might not be able to pay-in the shortfall on time — see rule 5.9.8.
(b) if the CM resource is more than the CM requirement — the amount of that surplus is paid out of the client bank account to which it relates by the close of business on the day on which the surplus is discovered, unless the firm considers that it is prudent to keep the money in the account to protect other money in the account.

Example of when it might be prudent to keep surplus

An investment business firm might want to keep money in the account if there are unreconciled items in its business ledgers as at the date of the calculation, and the firm wants to ensure that the client money in the account is protected.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).