Our CASS Oversight Committee, in cooperation with the Treasury Committee, is responsible for the selection, appointment and periodic review of financial institutions with whom we place or seek to place cash balances of clients’ portfolios.
Cash held for clients is only placed with financial institutions that have been approved by the committee. In considering whether or not to place client cash with a particular financial institution, the committee will consider its credit rating, financial strength and business and investment activities.
We pay interest on onshore and offshore sterling cash balances held within client accounts for all services at a rate equivalent to 0.20% below the Bank of England base rate.
Please note interest is paid gross and quarterly in January, April, July and October and credited to client accounts subject to the amount earned exceeding £10.00.
For rates payable on non-GBP balances, please contact your investment manager.
The Financial Services Compensation Scheme (FSCS) limit for deposits is £85,000 per person, per authorised institution (ie a banking institution that is authorised by the Financial Conduct Authority). FSCS is triggered when an authorised deposit taker (such as a bank, or building society) is unable, or likely to be unable, to repay its depositors. The FSCS protects eligible deposits in the event of a bank or building society failing.
Brooks Macdonald diversifies its pooled client cash accounts across a number of financial institutions, including some of the well-known UK High Street banks.
Further information about FSCS and compensation limits is available by contacting them direct (www.fscs.org.uk or 0800 678 1100) or by speaking to your Investment Manager, who can also provide details of the financial institutions that Brooks Macdonald are currently using.