Client account basics and naming

Topic preview

1. 01

   Client account type

   A firm receives client money. Say which type of bank account must be used and why a normal office or trading account is not enough.

2. 02

   Client account designation

   Give the naming move that makes the account’s purpose clear to the bank, the firm, and anyone reviewing the records.

3. 03

   Separate firm money

   If the firm wants to leave its own money in the same account as client money, what is the correct rule-based response?

4. 04

   Wrong account risk

   Explain the practical risk created when client money is paid into the wrong account, even if the ledger is later corrected.

5. 05

   Restore segregation

   If client money has been paid into the wrong bank account, what immediate accounting and banking steps should be taken to restore proper segregation?

6. 06

   Client money records

   What records would you expect to show that the money was client money and that it was held in the properly designated account?

7. 1 more building block

   The full topic unlocks with FLK2 Playbook, including the remaining prompts and answer-key marking.