Introduction The FSA regards the protection of client money and assets (CASS) as one of the fundamental issues facing the financial services industry.  The failure of Lehman Brothers and MF Global served only to force the subject of CASS compliance yet higher up the FSA’s list of priorities.  Two recent events have brought CASS issues […]

On 3 September 2012, the British Bankers’ Association (“BBA”) published a letter to the Client Assets Unit of the FSA seeking clarification with respect to several sections of the recently finalised CASS Resolution Pack rules contained within Chapter 10 of the FSA’s Client Assets Sourcebook, specifically: CASS 10.3.1(11): Retail and Professional Agreements – whether a […]

On 28 August, the FSA published Consultation Paper CP12/10, “Review of the client money rules for insurance intermediaries”. The Consultation Paper is aimed at all insurance intermediaries to which CASS 5 applies.  It attempts to address a number of concerns which arose during the FSA’s review of CASS 5, including: inappropriate controls around the use […]

On 25 July 2012, the FSA published consultation paper CP 12/15 on “Client Assets Firm Classification, Oversight, Reporting and the Mandate Rules”.  CP 12/15 is open for comment until 30 September 2012, and consults on possible changes in the following areas: CASS firm classification and operational oversight: clarifying that firms which only arrange safeguarding and […]

If you have an interest in Cass Resolution Packs and missed the Webinar which took place on 21 June with Derivsource, a video of the presentation is now online and available here. The presentation provides a brief background to CASS RP and summarises the law in this area before explaining in detail the practicalities and challenges of […]

Introduction Any UK firm which is subject to CASS 6 (custody rules) and/or CASS 7 (client money rules) is obliged to have a CASS Resolution Pack in place by 1 October 2012. CASS Resolution Packs form part of the FSA’s wider review of the client assets regime in the UK and represent the point where […]

Introduction Following the collapse of Lehman Brother and MF Global, the safety and security of client assets is a stated priority for the FSA.  On 26 March 2012, in furtherance of this agenda and as an “initial step in a wider review of the client assets distribution regime”, the FSA published Policy Statement PS 12/6, […]

On 26 March 2012, the FSA published Policy Statement PS 12/6 on CASS Resolution Packs.  We now know that all firms holding client money or safe custody assets will have until 1 October 2012 to be fully compliant with the CASS RP rules. A full review of the policy statement will be posted within the […]

Just how serious are the FSA regarding the enforcement of Recovery and Resolution planning in the UK?  Judging by the FSA’s Business Plan 2012/13, pretty serious.  In his overview, Hector Sants, FSA Chief Executive states that: “…our principal objective is to ensure that major firms whose failure would have significant systemic impact ideally do not […]