The challenges of complying with the FCA’s client assets regime

Kevin Huby

Journal of Securities Operations & Custody, 2016, vol. 8, issue 2, 157-162

Abstract: One of the areas on which the Financial Conduct Authority’s (FCA’s) spotlight has shone most brightly in recent times is client assets (CASS) protection and CASS rules. In addition to having a generally more intensive and rigorous supervisory approach to CASS, the FCA has recently strengthened the rules themselves. Coupled with a new standard for audit firms’ reporting on CASS compliance, this represents a new era for CASS compliance with corresponding challenges for investment firms, both large and small. The paper concludes with the message that the FCA’s focus on CASS will not just remain, but is likely to be replicated by other regulators across the world. It therefore explores the challenges of complying with the CASS regime, including the additional burdens on corporate funding, the scope for varying interpretations of the rules themselves and the implicit rule of developing an insolvency mindset. Usefully, the paper then goes on to provide some practical guidance around building an effective control framework and embedding effective CASS compliance within the business.

Keywords: CASS control framework; CASS governance; CASS control framework; CASS governance; CASS software; CASS audit; CASS RP (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jsoc00:y:2016:v:8:i:2:p:157-162

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