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Given all the concern following Cyprus, I've noticed banks changing Terms and Conditions - but this landed on my mat this morning from Santander and in the small print is this:

1b) your Money

Any money held for you in an account with Santander UK PLC will be held in its capacity as a bank and not as a trustee. In accordance with FSA requirements we are obliged to notify you that the client money rules do not apply to a Banking Consolidation Directive (BCD) credit institution in relation to deposits within the meaning of the BCD held in that institution. As a result, the money will not be held in accordance with the client money rules of FSA.

I assume this means if Santander gets into trouble my deposits are not protected. Can anyone confirm?

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Given all the concern following Cyprus, I've noticed banks changing Terms and Conditions - but this landed on my mat this morning from Santander and in the small print is this:

1b) your Money

Any money held for you in an account with Santander UK PLC will be held in its capacity as a bank and not as a trustee. In accordance with FSA requirements we are obliged to notify you that the client money rules do not apply to a Banking Consolidation Directive (BCD) credit institution in relation to deposits within the meaning of the BCD held in that institution. As a result, the money will not be held in accordance with the client money rules of FSA.

I assume this means if Santander gets into trouble my deposits are not protected. Can anyone confirm?

Aren't the client money rules about ringfencing your clients' money if you go bust - for example, a solicitor holding a client's housebuying money on the day of the purchase? What line of business are you in, and is that a generic letter sent to all holders of that particular type of account?

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Aren't the client money rules about ringfencing your clients' money if you go bust - for example, a solicitor holding a client's housebuying money on the day of the purchase? What line of business are you in, and is that a generic letter sent to all holders of that particular type of account?

Its a normal Santander business account - I don't hold client money.

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Its a normal Santander business account - I don't hold client money.

they dont either...they are holding your credit....

Banks ingnore the rules anyway and rehypothecate client funds anyway.

A current account has been help to be out of your control and your "money" enters the pool of money the bank holds..you are not entitled to any of it save as by contract...thus, any demands you make will come out of the pool.

if you were a client account, then the funds would come from your very own pool....thats the theory.

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they dont either...they are holding your credit....

Banks ingnore the rules anyway and rehypothecate client funds anyway.

A current account has been help to be out of your control and your "money" enters the pool of money the bank holds..you are not entitled to any of it save as by contract...thus, any demands you make will come out of the pool.

if you were a client account, then the funds would come from your very own pool....thats the theory.

Basically - this just makes me realize that you should keep as little in them as possible - which is easier said then done.

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Jenson Button or Jessica Ennis will see you right when Santander goes bust.

neither appears to even have a Bust.

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Jenson Button or Jessica Ennis will see you right when Santander goes bust.

'kin hate that advert <_<

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Given all the concern following Cyprus, I've noticed banks changing Terms and Conditions - but this landed on my mat this morning from Santander and in the small print is this:

1b) your Money

Any money held for you in an account with Santander UK PLC will be held in its capacity as a bank and not as a trustee. In accordance with FSA requirements we are obliged to notify you that the client money rules do not apply to a Banking Consolidation Directive (BCD) credit institution in relation to deposits within the meaning of the BCD held in that institution. As a result, the money will not be held in accordance with the client money rules of FSA.

I assume this means if Santander gets into trouble my deposits are not protected. Can anyone confirm?

Think you're confusing two issues.

Your money is protected by the government like the rest of us up to £85k

In a client segregation account you're (supposedly) not lending the bank money at all. It belongs to you in an absolute sense and the bank/trustee can't touch it, lend it to anyone else etc.* It's effectively putting cash in a safe.

* Doesn't always work like that. Ask clients of MF Gobal

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Think you're confusing two issues.

Your money is protected by the government like the rest of us up to £85k

In a client segregation account you're (supposedly) not lending the bank money at all. It belongs to you in an absolute sense and the bank/trustee can't touch it, lend it to anyone else etc.* It's effectively putting cash in a safe.

* Doesn't always work like that. Ask clients of MF Gobal

Many thanks - now makes sense.

Although MF Global proves that nothing is really safe - good point. :(

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snip

Your money is protected by the government like the rest of us up to £85k

snip

NOT Goverment...FSCS...paid for by all the banks and financial entities forced to be members...up to 4.xbn in any year.

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NOT Goverment...FSCS...paid for by all the banks and financial entities forced to be members...up to 4.xbn in any year.

Serves me right. Good to be on the receiving end of a pedantic correction.

:-)

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Serves me right. Good to be on the receiving end of a pedantic correction.

:-)

Its not a question of pedantry. its a question of getting important facts correct...many say that the accounts are guaranteed by government..indeed, some accounts are and were....this can lead to a false sense of entitlement..as it did in Cyprus...people were sure their Government was able to pony up....to back up any Bank Guarantees that were in place.

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Aren't the client money rules about ringfencing your clients' money if you go bust - for example, a solicitor holding a client's housebuying money on the day of the purchase? What line of business are you in, and is that a generic letter sent to all holders of that particular type of account?

I used to get paid handsomely working in the city ring fencing client money, reconciling and segregating accounts just for that reason. If we went bust their money wouldn't get swallowed up 'as ours'.

The accounting practices of all four banks I worked at (a Japanese one, an American one, German and British) were all shocking. Ledgers out all over the place.

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I used to get paid handsomely working in the city ring fencing client money, reconciling and segregating accounts just for that reason. If we went bust their money wouldn't get swallowed up 'as ours'.

The accounting practices of all four banks I worked at (a Japanese one, an American one, German and British) were all shocking. Ledgers out all over the place.

Interesting - was one of them Spanish and began with an "S"?

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Its not a question of pedantry. its a question of getting important facts correct...many say that the accounts are guaranteed by government..indeed, some accounts are and were....this can lead to a false sense of entitlement..as it did in Cyprus...people were sure their Government was able to pony up....to back up any Bank Guarantees that were in place.

And the guarantees are only good if the fund has not already been raised to prop up failing banks, as is planned by the BoE.

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Given all the concern following Cyprus, I've noticed banks changing Terms and Conditions - but this landed on my mat this morning from Santander and in the small print is this:

1b) your Money

Any money held for you in an account with Santander UK PLC will be held in its capacity as a bank and not as a trustee. In accordance with FSA requirements we are obliged to notify you that the client money rules do not apply to a Banking Consolidation Directive (BCD) credit institution in relation to deposits within the meaning of the BCD held in that institution. As a result, the money will not be held in accordance with the client money rules of FSA.

I assume this means if Santander gets into trouble my deposits are not protected. Can anyone confirm?

..considering the FSA no longer exists, Santandar need to get the finger out... :rolleyes: ....their deposits in the UK are protected up to the usual £85,000 limit...but that does not guarantee a haircut cannot be applied... :rolleyes:

Edited by South Lorne

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NOT Goverment...FSCS...paid for by all the banks and financial entities forced to be members...up to 4.xbn in any year.

And I thought it only covers personal and not business accounts?

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And I thought it only covers personal and not business accounts?

Small businesses are covered.

Is a business covered if the bank or building society it holds money with fails?

FSCS was set up mainly to assist private individuals, although some smaller businesses are also covered. Larger businesses are generally excluded, although there are some exceptions to this (for example for claims in respect of certain compulsory insurances). Our rules tell us which claims are eligible and form part of the FCA's Handbook of rules and guidance, under Redress, Compensation.

As an indicative guide only, for the purposes of deposit and investment claims, smaller companies are protected. A smaller company must meet two of the following criteria (as set out in section 247 of the Companies Act 1985 or section 382 of the Companies Act 2006 as applicable):

Turnover: not more than £6.5 million

Balance sheet total: not more than £3.26 million

Total number of employees: not more than 50

For claims made under an insurance contract, small businesses are protected. A small business under the COMP rules is one that has an annual turnover of less than £1m.

The same levels of compensation apply whether the claimant is a private individual, small business, or a small company.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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