COBS 14.4.2 Primary Pooling Events
(a) If the Authorised Person becomes insolvent, and there is (for whatever reason) a shortfall in Client Money or Relevant Money, as applicable, in a particular Statutory Trust, the available funds will be distributed in accordance with the Client Money Distribution Rules.
(b) A Primary Pooling Event occurs:
(i) on the Failure of an Authorised Person;
(ii) on the vesting of assets in a trustee in accordance with an Assets Requirement imposed under section 38 of FSMR; or
(iii) if the Regulator makes an order or decision to this effect under FSMR;
(iv) when the Authorised Person notifies, or is in breach of its duty to notify, the Regulator, in accordance with Rules 14.2.12(i), 14.2.19, 14.3.7, 15.9.5 and 16.2.15 that it is unable correctly to identify and allocate in its records all valid claims arising as a result of a Secondary Pooling Event.
(c) Rule (b)(iv) does not apply so long as:
(i) the Authorised Person is taking steps, in consultation with the Regulator, to establish those records; and
(ii) there are reasonable grounds to conclude that the records will be capable of rectification within a reasonable period.