431WMeaning of client money or property service and certain other terms

1. A client money or property service—

2. is the receipt of client money or client property by a person and the holding, payment, or transfer of that client money or client property; and
3. includes a custodial service.

4. A custodial service is the holding of client money or client property by a person (A) in trust for, or on behalf of, a client (C), or another person nominated by C, under an agreement between A and C or between A and another person with whom C has an agreement (whether or not there are also other parties to the agreement).

5. The mere transmission of a non-transferable instrument payable to another person is not a client money or property service.

6. A client money or property service is a regulated client money or property service if it is not excluded under any of clauses 19 to 23 of Schedule 5.

7. In this subpart,—

   client money means money—

   1. received in connection with acquiring, holding, or disposing of a financial advice product or otherwise in connection with a financial advice product; and
   2. received from, or on account of, a client by a person (A) (and not on A's own account)

   client property means property (other than money) to which the following apply:

   1. the property is a financial advice product, is a beneficial interest in a financial advice product, or is received in connection with a financial advice product; and
   2. the property is received from, or on account of, the client by a person (A) (and not on A's own account)

   provider means a provider of client money or property services.