Regulatory Alerts2013-07-17
Reconciliation of Client Funds
The Norwegian Financial Supervisory Authority issued this circular to mandate that financial entities holding client funds regularly reconcile those funds against client liabilities. The regulation requires a minimum monthly reconciliation of four specific financial figures, including bank statements, accounting records, and subsidiary ledgers, with all discrepancies and negative balances requiring explanation. This document supersedes previous circulars 23/2011 and 34/1997 and clarifies that client funds include advance payments for fees and other unallocated deposits.
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