Opening A Client Bank Account
9a
Subject to Regulation 11 hereof, a Firm which receives or holds Client s Money or
Mixed Monies or money which under Regulation 11 hereof the Firm is required to pay
into a client account, must immediately open one or more Client Bank Accounts. Any
Firm may maintain one or more Client Bank Accounts as appropriate. All money which
is Clients Money must be held in a Client Bank Account.
9b
On opening a Client Bank Account, a Firm must notify the Bank in writing that:
i. all money standing to the credit of that account is held by the Firm as Clients
Money and that the Bank is not entitled to combine the account with any other
account or exercise any right to see off or counterclaim against money in that
account in respect of any money owed to it on any other account of the Firm;
ii. interest payable on the money in the account must be credited to that account;
iii. the Bank must describe the account in its records to make it clear that the money in
the account does not belong to the Firm; and
iv. the Bank must acknowledge in writing that it accepts these terms.
(NB Sub-paragraph 9b(i) above was changed with effect from 1 July 2004. Any firm that has
opened a clients money bank account not using the above wording, has until 31 December 2005
to obtain a revised confirmation from the bank.)
9c
For Client Bank Account in the United Kingdom or Ireland, if the Bank does not provide
the acknowledgement required under sub-paragraph (b) above within 20 business days of the
Firm sending the notice, the Firm must:
i. withdraw all money from the account;
ii. close the account; and
iii. deposit the money with another Bank in a Client Bank Account; or
iv. as a last resort, return the money to the client.