Feb 13 16:39
3 mos ago
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English term
United Kingdom
Experienced technical/patent translator
Native in: English (Variants: British, US) 
Works in: Dutch to English, Flemish to English, English to Dutch, and 2 more.
Non-Statutory Trust
English to Dutch
Bus/Financial
Insurance
Terms of Business of a Managing General Agent (MGA) and Lloyd’s Coverholder
context:
"Non Statutory Trust
We keep client money with the XXX Bank; it is separate from our own money and
subject to a non-statutory trust. This means that we are entitled to and may use client money held on behalf of our client to pay another client’s premium before the premium is received from that other client, and to pay claims and premium refunds to another client before we receive payment from the insurer. We only take our remuneration from client money when we receive the relevant premium from the client."
(Terms of Business of a insurance MGA and Lloyd’s Coverholder)
"Non Statutory Trust
We keep client money with the XXX Bank; it is separate from our own money and
subject to a non-statutory trust. This means that we are entitled to and may use client money held on behalf of our client to pay another client’s premium before the premium is received from that other client, and to pay claims and premium refunds to another client before we receive payment from the insurer. We only take our remuneration from client money when we receive the relevant premium from the client."
(Terms of Business of a insurance MGA and Lloyd’s Coverholder)
References
| Why it's called that |
Steve Robbie
|
Reference comments
42 mins
Steve Robbie
United Kingdom
United Kingdom
Native in English
Specializes in field
United Kingdom
Expertise, accuracy and style
Native in: English
Works in: German to English, French to English, Dutch to English
Reference:
Why it's called that
The terminology (statutory vs. non-statutory) seems to be specifically linked to the client money rules for British insurers, guidance on which can be found here:
https://www.fca.org.uk/publication/archive/fsa-client-money-...
So where does the notion of "statutory" comes in? It doesn't say explicitly, but this looks like the relevant part:
1.4.2 Unlike the non-statutory trust, which requires a firm to declare a trust and have a properly executed trust deed, the trust status of a statutory trust arises automatically – our rules impose a trust on client money.
In other words, a "statutory" trust arises by automatic operation of statute law, whereas a "non-statutory" trust doesn't: it must be explicitly established.
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Note added at 44 mins (2024-02-13 17:23:58 GMT)
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N.B. The document I linked is from 2007 & the precise rules may well have changed since then.
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Note added at 55 mins (2024-02-13 17:34:50 GMT)
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Automatic operation of statute law ... or at any rate the applicable FCA regulations.
https://www.fca.org.uk/publication/archive/fsa-client-money-...
So where does the notion of "statutory" comes in? It doesn't say explicitly, but this looks like the relevant part:
1.4.2 Unlike the non-statutory trust, which requires a firm to declare a trust and have a properly executed trust deed, the trust status of a statutory trust arises automatically – our rules impose a trust on client money.
In other words, a "statutory" trust arises by automatic operation of statute law, whereas a "non-statutory" trust doesn't: it must be explicitly established.
--------------------------------------------------
Note added at 44 mins (2024-02-13 17:23:58 GMT)
--------------------------------------------------
N.B. The document I linked is from 2007 & the precise rules may well have changed since then.
--------------------------------------------------
Note added at 55 mins (2024-02-13 17:34:50 GMT)
--------------------------------------------------
Automatic operation of statute law ... or at any rate the applicable FCA regulations.
Note from asker:
| Thanks Steve! Probably best to leave it untranslated. |
Discussion