CASS Consultation Paper (CP) – Time to Comment

The Treasury has now published amendments to the SAR Regulations and, with that in mind, this CP seeks feedback on proposed changes to the CASS rules affecting the return of client assets, against the backdrop of the amendments to the SAR Regulations.

This consultation is relevant to all regulated firms that hold custody assets and/or client money in relation to investment business. The FCA is inviting comments by 24th April. Collectively, these proposals aim to speed up the distribution of client assets, improve consumer outcomes and reduce the market impact of an investment firm failure.

It is worth noting that while the CASS review objectives focus on the treatment of client assets following a firm’s insolvency, the CASS 7A rules can apply in circumstances other than a firm’s insolvency. For example, in exercise of its supervisory powers, the FCA may impose a requirement on all the client money held by a firm in a situation in which it feels this is necessary to ensure that client money is protected.

Related Topics