As the Financial Services Compensation Scheme (FSCS) now applies to client money in the same way as it applies to private/individual deposits, we have updated our standard terms of business to reflect this. Paragraph 3 Client Monies now reads as follows:
“We may from time to time, hold money on our clients’ behalf. Such money will be held in trust in a client bank account, which is segregated from our funds and this account shall be operated in accordance with the client money rules of the Chartered Institute of Taxation, the Institute of Chartered Accountants in England and Wales and the Association of Chartered Certified Accountants.
At present client money held by websters will be deposited in an account with Lloyds Bank. The Financial Services Compensation Scheme (FSCS) applies to client money in the same way as it applies to private/individual deposits. Therefore the FSCS protects the first £75,000 deposited, with an authorised deposit-taking institution, on behalf of a client and it is unlikely that websters would be held liable for losses resulting from a banking failure.
If you hold other personal money in the same institution as our client account the limit remains £75,000 in total for all of your deposits within that institution. Some institutions have several brands so you should check with your bank, the FCA or a financial adviser for more information. If we hold monies on your behalf at the time of a deposit-taking institution failure, we will first seek your consent to disclose the required details to the FSCS, to seek compensation for those funds.
The FSCS also now provides a £1m protection limit for temporary high balances held with a bank, building society or credit union if it fails. Cover is limited to natural persons only and related to specific life events including property transactions and those related to inheritance. Deposits are protected up to six months from when the amount was first credited or from the moment a qualifying deposit became legally transferrable.”
No other changes have been made to our terms of business. A full copy of our business terms can be found on our website here.