📅 June 21, 2019 | Appointed Representative
The Financial Conduct Authority say, in their rules, that anyone holding client money in an authorised trust account needs to be producing an accurate client money calculation at month end. This is to establish that you have enough money in order to pay the client accounts due and are not misusing client premiums.
For the most part this is an overlooked process and for significant numbers of brokers it not done correctly which can have severe consequences with the regulator. Especially as this forms part of an broker’s Gabriel return (the half yearly return to the Financial Conduct Authority which requires declarations on various aspects of the business including Client Money and Client Money Auditing).
One of the benefits of our Appointed Representative Network is that we take care of this of this function. As our systems are centralised so it makes the process of dealing with commissions and more importantly premiums, very easy, very safe and very secure.
In our proposition we are very interested in Directly Authorised firms who may be looking for the time and cost savings solutions. As we know the process to incorporate correct Client Money Calculations into an already difficult time of the month, can be very demanding and will inevitably lead to shortcuts. The fear of having to disclose Client Money issues for many firms must be a huge concern and probably prevents engagement with firms like ourselves who can offer a much better solution to their overall trading position.
The fact remains we are very experienced in Client Money, its rules and making systems provide the right reporting and we are always happy to discuss this matter in the strictest of confidence to both sort and eventually move away from this problem area.