What is Client Money?
Client money represents the total financial assets held on behalf of a client. This includes funds in bank accounts, investments, and money held by third parties.
Formula
$$\text{Client Money} = B + T + I$$
Where:
- B = Client Bank Account Balance
- T = Money Held By Third Parties
- I = Client Investment Value
Example Calculation
For example, if you have:
- Client Bank Account Balance: $300,000
- Money Held By Third Parties: $50,000
- Client Investment Value: $120,000
Then:
$$\text{Client Money} = 300{,}000 + 50{,}000 + 120{,}000 = 470{,}000$$
The total client money is $470,000.