[F1137BFCA general rules: clients' money, right to rescind etc.U.K.
(1)Rules relating to the handling of money held by an authorised person in specified circumstances (“clients' money”) may—
(a)make provision which results in that clients' money being held on trust in accordance with the rules,
(b)treat 2 or more accounts as a single account for specified purposes (which may include the distribution of money held in the accounts),
(c)authorise the retention by the authorised person of interest accruing on the clients' money, and
(d)make provision as to the distribution of such interest which is not to be retained by the authorised person.
(2)An institution with which an account is kept in pursuance of rules relating to the handling of clients' money does not incur any liability as constructive trustee if the money is wrongfully paid from the account, unless the institution permits the payment—
(a)with knowledge that it is wrongful, or
(b)having deliberately failed to make enquiries in circumstances in which a reasonable and honest person would have done so.
(3)Rules may—
(a)confer rights on persons to rescind agreements with, or withdraw offers to, authorised persons within a specified period, and
(b)make provision, in respect of authorised persons and persons exercising those rights, for the restitution of property and the making or recovery of payments where those rights are exercised.
(4)“Rules” means general rules of the FCA.
(5)“Specified” means specified in the rules.]
Textual Amendments
F1Pt. 9A substituted for ss. 138-164 (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 24(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.