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:


(i) a current account; or
:(a) money which is deposited with an eligible institution or an approved bank in:
(ii) a deposit account, if the money can be withdrawn immediately and without payment of a penalty exceeding seven days' interest calculated at ordinary commercial rates;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;
::(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::(ii) a deposit account, if the money can be withdrawn immediately and without payment of a penalty exceeding seven days' interest calculated at ordinary commercial rates;


(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;
:(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 of a kind which fall within paragraph 9 of Part II of the First Schedule to the Trustee Investments Act 1961, and equivalent deposits with any local authority in another EEA State, if the money can be withdrawn immediately and without payment of a penalty as described in (a).
 
:(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with a UK local authority, and equivalent deposits with any local authority in another EEA State, if the money can be withdrawn immediately and without payment of a penalty, as described in (a).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]]
*[[Money market]]
*[[Security]]
*[[Statement of financial position]]
*[[Treasury bills]]
*[[Treasury bills]]



Latest 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.


See also