Euro cash pooling

Following on from Stuart Porter’s review, Stephen Weston, Senior Manager of Arthur Andersen’s Treasury Tax Solutions Group, focuses on the case of a UK multinational with European subsidiaries participating in Euro cash pooling with the pool header account held by a UK company in the UK.

Stephen Weston, Senior Manager Arthur Andersen Treasury Tax Solutions Group Tel: 020 7304 8567 email: Stephen.weston@uk.arthurandersen.co

Cash pooling is one of a range of international cash management techniques available to the corporate group treasurer. Although banks offer a number of generic solutions, cash pooling should not be viewed as a product that can simply be purchased “off the peg”. Devising the optimal structure requires an evaluation of a combination of factors that are specific to the group, including the organisational structure, internal systems and procedures, geographical spread and the location of cash deficits and surpluses.