Introduction On 14 April 2015, the FCA published its final notice fining The Bank of New York Mellon London Branch and the Bank of New York Mellon International Limited (together, “BoNY”) a total of £180 million (reduced to £126 million on account of early settlement) for failure to arrange adequate protection of safe custody assets […]

Introduction The requirement to create and maintain a CASS Resolution Pack (CASS RP), formed a key plank in the FCA’s review of the client assets regime in the UK.  It requires each firm which is subject to CASS Chapter 6 (Custody rules) or Chapter 7 (Client money rules) to collate certain information regarding its handling […]

On 1 July 2014, the FCA published PS14/10 “Client Money held in Individual Savings Accounts”.  The policy statement amends the client money rules[1] and provides confirmation that, from 1 July 2014:

On 10 June 2014, following its original July 2013 consultation paper[1] the FCA published its long-awaited policy statement  and accompanying guidance note detailing changes to the client assets regime in the UK. The policy statement represents a material rewrite of the CASS regime in the UK.  The most significant amendments are summarised here.  A number […]

Prompted by yesterday’s authorisation of LCH. Clearnet Ltd. and perhaps by the “no exemptions” comment by a CFTC official, the FCA has suggested a convoluted workaround for EU CCPs who are caught in the US client asset catch 22. Article 39 EMIR, as clarified by Question CCP 8i ESMA Q&A, stipulates that a European CCP […]

An interesting snippet in today’s Risk magazine provides a further clue to the rapidly-evolving culture at the CFTC. Ananda Radhakrishnan, the Agency’s Director of the Division of Clearing and Risk, told a conference in London yesterday, “The first response cannot be: ‘CFTC, you have to provide an exemption.’ I say: why? I’m tired of providing […]

On 13 January 2014, the FCA published its policy development update for December 2013 (PDU no 9). This details forthcoming FCA publications relating to a number of areas, including those detailed below. Business Standards Initiative Current Expected Publication Date Previous Expected Publication Date Client assets review (includes consultation on EMIR and indirect client clearing: policy […]

Firms continue to take inadequate steps to ensure compliance with the Client Money rules.  The latest case involving insurance broker Towergate highlights the FCA’s renewed sense of purpose and the fact that insurance brokers are not immune. The broker misallocated £15m of client and insurer money over a four year period (from November 2007 to […]

On 3 September 2013, the Financial Conduct Authority (FCA) published a press release announcing the final notice it has issued to Aberdeen Asset Managers Limited and Aberdeen Fund Management Limited (“Aberdeen”), fining the firm £7,192,500 for breaches of the FCA’s client money rules.  This fine included a 30% discount for early settlement by Aberdeen. Over […]