Regulatory Alerts2011-01-26
Recommendation 2011-R-01 of January 26, 2011, on the management by credit institutions of client accounts held by condominium managers
The Prudential Control Authority (ACP) issued Recommendation 2011-R-01 to prohibit credit institutions from allowing the transfer of funds held in client accounts for condominium managers to other banks or from merging accounts to offset balances. This directive addresses practices where funds intended for condominium expenses were made freely available to managers or offset against debit balances in 'mirror' accounts, thereby jeopardizing the availability of these protected funds. Credit institutions are required to cease these practices and ensure that such funds remain available for their legally mandated purpose of covering condominium expenses.
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