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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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).
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
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?
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.
The Employment Agencies Act 1973
And The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as detailed in Statutory Instrument 2003 No. 3319).