CLIENT MONEY ACCOUNT

According to the industry regulations in the UK and EU, financial firms are required to hold client money in safeguarding accounts. The internal systems and controls that need to be in place to protect the money held in such accounts are prescribed by FCA in CASS or in similar provisions published by other regulators in EEA. Firms that chose not to implement these controls may take advantage of the Clear Junction Client Money Accounts – a solution that lets an authorized firm to open e-money accounts in the names of its clients. Funds held on these accounts belong to the clients.

From a practical perspective, the firm’s clients are offered to opt in to opening of a Clear Junction e-money account and to entitle the firm to convey to Clear Junction their instructions in regards to the management of the e-money on these accounts.

The firms using Clear Junction Client Money Accounts gain the following:
Ease of dealing with the client funds
Ease of dealing with the client funds: The highly regulated activity of holding of client funds is shifted to an authorized partner
Access to payment services
Access to payment services: Wide range of the payment services offered by Clear Junction can be used for making payments to and from the Client Money accounts
Rich APIs for management for the e-money accounts
Rich APIs for management for the e-money accounts: Opening, closing, transfer instructions, reporting etc

FCA prescribes that to brokers and similar firms providing services to non-retail clients, the client money safeguarding requirements may not apply (CASS 7.11.1). These authorized firms may use Clear Junction Omnibus Account for holding their client funds.

Services used:

Payment account, IBAN Issuance, UK Payouts, SEPA Payouts