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At Brown Shipley, we take the protection of your money seriously. This page explains how we handle your funds and what happens in different situations to keep your money safe.
This page forms part of your agreement with us, so it’s important to take a moment to read through. If anything isn’t clear, we’re happy to help—just get in touch!
How We Hold Your Money
We hold your money in different ways depending on the situation:
- When We Hold Your Money as Client Money: This means it is protected under special FCA rules and kept separate from our own funds. If we were to fail, your money would be distributed according to Client Money Rules, reducing the risk of loss.
- When We Hold Your Money as a Banker: In most cases, we hold your money as a bank would hold a deposit. This means:
- Your money is not separated from our own funds.
- The Client Money Rules do not apply.
- If we were to fail, you would be a general creditor, meaning you may not get all of your money back unless covered by FSCS protection (up to £85,000 per person per bank). Please refer to our General Terms & Condition for full details.
By using our services, you acknowledge and agree that your money may be held either as client money or as a bank deposit, depending on the circumstances.
Situations When Your Money is Held as Client Money
We will hold your money as client money when:
- Investment Shortfalls – If we identify a shortfall in an investment we manage for you (for example, due to an administrative error), we may cover the shortfall with our own money and hold it as client money until the issue is resolved.
- Unallocated Funds – If you send us money and it hasn’t been assigned to your account within 10 business days, we will hold it as client money until it is allocated.
- Cheques – If we receive a cheque for your account, we are required under FCA rules to pay it into your account within one business day. If a cheque is returned unpaid after your account has been closed, any funds received back may be treated as client money.
- Corporate Actions – If we receive money on your behalf due to events like dividend payments or mergers, we will treat it as client money if it has not yet been credited to your account.
- Redress Payments – If we receive a compensation or redress payment for you (for example, from a company you invested in), we will hold it as client money until it is paid to you.
- Other Situations – If required by FCA rules or if we believe holding your money as client money is in your best interest.
How We Keep Your Client Money Safe
When we hold your money as client money:
- It is kept separate from our own funds. We hold it in specially designated client accounts at regulated banks or financial institutions.
- We carefully select where to hold your money. We only use banks or institutions that meet strict regulatory standards.
- It may be pooled with other clients' money. This means your money is protected as part of a larger pool, but in the unlikely event that the bank holding the funds fails, you may share in any shortfall proportionally.
- It is covered by FCA rules. If we ever became insolvent, your client money would be distributed in line with FCA regulations to protect your funds.
Some of these scenarios are outlined in our General Terms and Conditions (Clause 47.15.1). Others reflect how we may apply the Client Money Rules in practice. This list is not exhaustive, and we will always follow applicable regulatory requirements when determining whether your money should be held as client money.
What Happens If We Transfer Our Business?
If we ever transfer our business to another company, we might also transfer your client money to them. This would only happen if:
- The new company agrees to keep your money protected under FCA rules.
- You can request your money back at any time.
If the amount we hold for you is small (£25 or less for retail clients, £100 or less for others), we might transfer it even if the new company doesn’t hold it under client money rules. However, they’d still have to return it to you if you asked.
By banking with us, you accept that your client money may be transferred under these conditions. These provisions are found in Clause 47.15.6 of our Terms and Conditions.
Overseas Institutions
Your money may be held in banks or institutions outside the UK. The legal and regulatory protections in these countries may be different or less than those in the UK. If such an institution fails, your money may be treated differently than if it were held in the UK. Details are provided in Clause 47.15.4 of our Terms and Conditions.
Dormant Accounts
If we lose contact with you and there has been no activity on your client money account for at least six years (excluding interest, charges, or similar items), we will follow our internal procedure for dormant accounts, as outlined in Clause 47.15.5 of our Terms and Conditions.
Your Responsibilities
Please keep us informed of any changes to your personal details or circumstances that might affect how we manage your money.
If your circumstances change or you have any questions, please do not hesitate to contact us here.
If your circumstances change or you have any questions, please do not hesitate to contact us here.