COB A5.3 COB A5.3 Payment of Client Money into Client Accounts
Authorised Firmholds or controls Client Moneyit must ensure, except where otherwise provided in COB section A5.5 that the Client Moneyis paid into one or more Client Accountswithin one day of receipt.
Subject to COB Rule A5.3.3, an
Authorised Firmmust not deposit its own Moneyinto a Client Account.
COB A5.3.3(1) An
Authorised Firmmay deposit its own Moneyin a Client Accountwhere:(a) it is a minimum sum required to open the account, or to keep it open;(b) the Moneyis received by way of mixed remittance provided the Authorised Firmtransfers out that part of the payment which is not Client Moneywithin one day of the day on which the Authorised Firmwould normally expect the remittance to be cleared;(c) interest credited to the account exceeds the amount payable to Segregated Clients, provided that the Moneyis removed within twenty five days; or(d) it is to meet a shortfall in Client Money.(2) Where an Authorised Firmdeposits any Moneyinto a Client Accountsuch Moneyis Client Moneyuntil such time as the Moneyis withdrawn from the Client Accountin accordance with the Client Money Provisions.
Authorised Firmmust maintain systems and controls for identifying Moneywhich must not be in a Client Accountand for transferring it without delay.
COB A5.3.5 COB A5.3.5
Authorised Firmis aware that a Personmay make a payment of Client Moneyto the Authorised Firm, it must take reasonable steps:(a) to ensure that such payment of Client Moneyis directed to a Client Account; and(b) to ensure that the Authorised Firmis notified by that Personof such payment as soon as reasonably practicable.
COB A5.3.5 Guidance
Authorised Firmshould have procedures for identifying Client Moneyreceived by the Authorised Firm, and for promptly recording the receipt of the Moneyeither in the books of account or a register for later posting to the Clientcash book and ledger accounts. The procedures should cover Client Moneyreceived by the Authorised Firmthrough the mail, electronically or via agents of the Authorised Firmor through any other means.