Money not held in accordance with client money rules of FSA?!?

mickael28

Hello,

I've got an account with Santander and today I got a letter with some changes to the Terms and Conditions.

The section about 'Your Money' states:

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 by that institution. As a result, the money will not be held in accordance with the client money rules of FSA.

To be honest, I don't know what this paragraph means but I was wondering if it's something to do with the £85K protection that's offered to bank accounts in the UK?

Do you know what that change actually means?

Cheers!!

JuicyJesus

Basically, banks holding clients' money for investment purposes need to keep most of it outside of their own bank, so that should they themselves collapse their clients' money (or at least most of it) is safe. Santander are just telling you that this does not apply to your bank account - as it isn't an an investment fund, the funds in it will be held solely at Santander.

mickael28

JuicyJesus wrote: »

Basically, banks holding clients' money for investment purposes need to keep most of it outside of their own bank, so that should they themselves collapse their clients' money (or at least most of it) is safe. Santander are just telling you that this does not apply to your bank account - as it isn't an an investment fund, the funds in it will be held solely at Santander.

Thank you very much!!, understood now...