Client Account / Holding Account

Bank account for holding clients money - non regulated business

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Hi All, 

I'm about to launch a talent agency and finding it tricky to find a bank account which fulfils my needs for client money. I have been looking for something akin to a client account - i'll be invoicing production companies for my talent's fees (not on my payroll, they're all freelance), which will go into a seperate 'client' account, i'll take commission off which will go into a seperate general business account as my income, and then pay my talent their remaining fees. I've been looking at specific client accounts offered by the banks and they all state you have to be regulated to open one. I'm not a financial business so i'm not regulated, therefore I can't open one. 

I wanted to see if anyone here has had any thoughts on any accounts I could use to fulfill my requirements? I have tried speaking to various banks - HSBC, Starling, Metro but in the time of Covid it's impossible to get through and actually speak to someone who understands what I need! I'm in the process of opening an account with HSBC in the hope I can get some proper advice when I have an account open - though this is taking a very long time. 

Anty advice much appreciated. Thank you. 

Replies (16)

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By Paul Crowley
21st Aug 2020 13:06

Nothing to stop you just having a seperate account that does the same job.

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Replying to Paul Crowley:
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By the_fishmonger
21st Aug 2020 14:06

But that would leave clients money at risk should the OP ever have any financial issues. The fact that OP asked this question suggests they do not want to put their clients in the position of having any such concerns.

It baffles me why banks are loath to set up client accounts for non-regulated businesses as, surely, they are one of the better sort of deposit accounts that they can be sat on. So long as the business has its current account with the same bank, the charges for operating client accounts would not be at issue (I can understand not offering stand alone accounts for that reason).

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Replying to Paul Crowley:
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By LucyLoop
21st Aug 2020 15:10

Thanks for your reply. I had thought I needed to specifically have a named 'client' account but if I don't then that's great!

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By Jfg
21st Aug 2020 13:33

HSBC are tricky at the best of times. As Paul Crowley says, just open another account

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By WhichTyler
21st Aug 2020 14:51
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Replying to WhichTyler:
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By WhichTyler
21st Aug 2020 15:01

More practically: Barclays Soho Square branch and Coutts on the Strand have lots of media and entertainment clients including agents, so should be familiar with your needs

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Replying to WhichTyler:
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By LucyLoop
21st Aug 2020 15:14

Excellent idea! Thank you

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By LucyLoop
21st Aug 2020 15:13

Metro Bank suggested I open two instant access accounts and just label one as the client account. The only problem is i'm not launching the company (i'm toward the end of a non compete contract) until mid September, and the last company accounts were filed as dormant. On Experian my company is therefore labelled as dormant, even though it says active on companies house - and Metro won't let me open the account until it's an active company. It's unbearably frustrating!

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Replying to LucyLoop:
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By WhichTyler
21st Aug 2020 17:57

if you have a non compete contract, it implies you were in a similar business before. If so, why not try the bank your previous employers use?

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By LucyLoop
21st Aug 2020 18:49

HSBC! But the problem is, due to Covid, there are no business reps in stores so you have to call their helpline. You're then at the mercy of speaking to a business manager who doesn't understand the industry and doesn't know what to offer.

After I posted this I emailed the Picadilly branch of Metro and the Business Manager there said it's not possible for me to even hold a standard bank account and hol client money for liability reasons. He is however going to do some research and make some suggestions! A start anyway.

Thank you everyone for your responses and help!

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Replying to LucyLoop:
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By keanu2022
23rd Feb 2022 17:34

Hey Lucy, by any chance did you find a workaround for this?

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By Matrix
22nd Aug 2020 07:44

If you’re invoicing for the total amount then I don’t see how this is client money.

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By GrantW
30th Nov 2021 11:39

I completely understand your question as I too am looking for a bank that will provide a 'client' account for a new Talent Agency. The most frustrating thing is that I already have another agency business that banks with HSBC and that has a 'client' account, but they won't allow me to open 'client' account for my new business, they just say that they no longer provide 'client' accounts for new businesses in my sector, and that their criteria was changed last year. I too have tried several other banks, and whilst they will all provide a second 'general' current bank account or a deposit account, those types of accounts don't satisfy the requirements of the Act. Effectively, the banks are forcing us to trade and handle clients funds in contravention of the Act. If I find a bank that will support our needs, or any other information of use or value i'll share it.

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Replying to GrantW:
paddle steamer
By DJKL
30th Nov 2021 12:03

What Act?

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Replying to DJKL:
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By GrantW
01st Dec 2021 12:21

The Employment Agencies Act 1973

And The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as detailed in Statutory Instrument 2003 No. 3319).

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By keanu2022
23rd Feb 2022 17:33

Hey Grant, by any chance did you find a workaround for this?

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