Near cash: Difference between revisions
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Money, deposits or investments which, in each case, fall within any of the following: | Money, deposits or investments which, in each case, fall within any of the following: | ||
(a) money which is deposited with an eligible institution or an approved bank in: | :(a) money which is deposited with an eligible institution or an approved bank in: | ||
(i) a current account; or | ::(i) a current account; or | ||
(ii) a deposit account, if the money can be withdrawn immediately and without payment of a penalty exceeding seven days' interest calculated at ordinary commercial rates; | ::(ii) a deposit account, if the money can be withdrawn immediately and without payment of a penalty exceeding seven days' interest calculated at ordinary commercial rates; | ||
( | :(b) certificates of deposit issued by an eligible institution or an approved bank if immediately redeemable at the option of the holder; | ||
(e) deposits with a local authority | :(c) government and public securities, if redeemable at the option of the holder or bound to be redeemed within two years; | ||
:(d) bills of exchange which are government and public securities; | |||
:(e) eligible deposits with a UK local authority, and equivalent deposits with any local authority in another EEA State, if the money can be withdrawn immediately and without payment of a penalty, as described in (a). | |||
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*[[Cash]] | *[[Cash]] | ||
*[[Cash equivalents]] | *[[Cash equivalents]] | ||
*[[Certificate of deposit]] | |||
*[[Current account]] | |||
*[[Deposit account]] | |||
*[[Dry powder]] | *[[Dry powder]] | ||
*[[EEA]] | |||
*[[Financial Conduct Authority]] | *[[Financial Conduct Authority]] | ||
*[[Liquidity]] | *[[Liquidity]] | ||
*[[ | *[[Security]] | ||
*[[Treasury bills]] | *[[Treasury bills]] | ||
Revision as of 11:56, 19 July 2019
1. UK - Financial Conduct Authority (FCA).
The FCA defines near cash as:
Money, deposits or investments which, in each case, fall within any of the following:
- (a) money which is deposited with an eligible institution or an approved bank in:
- (i) a current account; or
- (ii) a deposit account, if the money can be withdrawn immediately and without payment of a penalty exceeding seven days' interest calculated at ordinary commercial rates;
- (b) certificates of deposit issued by an eligible institution or an approved bank if immediately redeemable at the option of the holder;
- (c) government and public securities, if redeemable at the option of the holder or bound to be redeemed within two years;
- (d) bills of exchange which are government and public securities;
- (e) eligible deposits with a UK local authority, and equivalent deposits with any local authority in another EEA State, if the money can be withdrawn immediately and without payment of a penalty, as described in (a).
2.
Outside the FCA context, the term 'near cash' is also used more broadly, and may include fewer, or more, assets than those defined strictly above.
