FSA position on holding client money is clear as mud to me

From Andrew Hughes

I read with amusement the letter from Andrew Green (Mortgage Strategy September 5) regarding holding client money.

I asked the same question to an FSA adviser at a recent FSA roadshow and the reply was along the lines of, “If a client gives you cash or a cheque payable to your company for payment of a valuation this is classed as holding client money and you will need the relevant permissions and capital requirements.

“But if you pay for the valuation yourself and the valuation takes place, then the client repays you with cash or a cheque payable to your company, then this is not holding clients’ money. This is classed as repayment of money owed to you.”

I can picture this discussion running for some time yet.