If your firm holds client money, the Financial Conduct Authority (FCA) requires it to be kept in a separate client bank account, distinct from the firm’s own funds. This segregation is vital to protect consumers and maintain trust.
In the event of a firm’s failure, properly segregated client money ensures that those funds are held on trust for the client, rather than forming part of the firm’s assets. This distinction helps to safeguard clients from financial loss and provides clarity on their entitlement compared with general creditors.
Firms should regularly review their client money processes to ensure compliance with the FCA’s Client Assets Sourcebook (CASS) and confirm that reconciliation, record-keeping, and oversight arrangements remain robust.
