03.15 – Intermediary Account (Escrow accounts)

Accounts that meet the conditions below will not be Financial Accounts.

Accounts held by a UK Financial Institution for a non-Financial Intermediary (such as a firm of solicitors or estate agents) and established for either:

  • a court order, judgement or other legal matter on which the non-Financial Intermediary is acting on behalf of their underlying client; or
  • a sale, exchange, or lease of real or personal property where it also meets the following conditions:
    • The account holds only the monies appropriate to secure an obligation of one of the parties directly related to the transaction,
    • or similar payment, or with a financial asset that is deposited in the account in connection with the transaction.
    • The account is established and used solely to secure the obligation of the parties to the transaction.
    • The assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the parties when the transaction is completed.
    • The account is not a margin or similar account established in connection with a sale or exchange of a financial asset; and
    • The account is not associated with a credit card account.

Accounts provided by a non-Financial Intermediary as an intermediary (such as non-legal Escrow type accounts) that meet the conditions above will also not be Financial Accounts.

Where the Financial Account does not meet the above conditions, then please refer to Section 3.16.