Question ID:
Legal Act:
Directive 2014/59/EU (BRRD)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Not applicable
Disclose name of institution / entity:
Type of submitter:
Competent authority
Subject Matter:
Client money

To what extent the cash held by a UCITS can be qualified as client money?

Background on the question:

Part of the client’s money invested into UCITS can be held in cash by the UCITS and thus accounted as a deposit in banks’ balance sheet. The article 44.2.c seems to say that the deposits of UCITS are client money excluded from the bail-in. Indeed, according to this article “client money held on behalf of UCITS as defined in article 1(2) of Directive 2009/65/EC” is excluded from bail-in.

Date of submission:
Published as Final Q&A:
Final Answer:

Cash deposited by a UCITS with a credit institution can be qualified as "client money" for the purposes of Article 44 (2) (c) of Directive 2014/59/EU if the credit institution acts as a depositary for the UCITS pursuant to Article 22 of Directive 2009/65/EC, and in particular where the sums are booked in cash accounts opened in the name of the UCITS, of the management company acting on behalf of the UCITS, or of the depositary acting on behalf of the UCITS, and in the latter case is segregated from the depositary’s own cash.


This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Final Q&A
Answer prepared by:
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A:

Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.