Many brokers are finding the client money rules troublesome.
In the past weeks, I have received numerous emails and telephone calls from brokers asking for advice on this topic.
Some are unclear what is meant by risk transfer, while others do not know whether they hold client money. There are also those who need guidance on the different trust account options that are available - and it is this area that the Compliance Zone looks at this week.
The client money rules are a crucial part of the regulatory regime. The FSA will treat failures to properly handle client money very seriously.
While the rules appear to be complex, many firms will already be operating in a way that is very similar to what the FSA requires. Nonetheless, brokers are well advised to review their arrangements to ensure that they are compliant and that they fully understand the implications of their approach.
Michael Faulkner
To get your question answered by the FSA please email
michael.faulkner@instimes.co.uk
