CASS: Client Asset and MoneyRules Flashcards
who do the client money and custody rules apply to
all clients RC PC ECP
purpose of the client money and custody rules
fiduciary duty to provide adequate protection for client money
which CASS rule is custody and where does it apply
CASS 6
mifid and non mifid business
which CASS rule is client money and where does it apply
mifid business
opt in available for non mifid business
what is segregation of assets
client money held in an approved bank and separate from the firms money
what qualifies as an approved bank in segregation
a central bank, a BCD credit institution, a bank authorised by a third country or a qualifying money market fund
the requirement to reconcile applies to who
all clients RC PC ECP
how often do firms need to reconcile records of client asset balances
as often as necessary
when should shortfalls be corrected
asap - close of business on the day of reconciliation
what must a firm do if unable to reconcile
must write to the FCA
what three firms do CASS rules not apply
ICVC
UCITS schemes
BCD credit institutions
what three types of money do CASS not apply to
coins held for the value of their metal
money held for delivery versus payment
money due and payable to the firm
when does client money cease to be such
once cleared, normally when funds leave the account
who does enhancing the CASS regime apply to
all clients rc pc ecp
what are the 4 things to enhance the cass regime (without description)
CASS audit
right of use
CASS resolution pack
Mandate accounts
how often is a CASS audit required and by when does it need to be submitted to the FCA
required annually
submitted to the FCA within 4 months of the audit
who sets the CASS audit assurance standard
the Financial Reporting Council
what must a firm do if CASS audit identifies a breach
must explain any breach identified
what is right of use
where the right to use a clients assets is transferred to the firm
what is it called when a firm uses clients assets
rehypothecation
what needs to be in place for a firm to use clients assets
firm and client must have a proper right of use agreement in place, called a TTCA (title transfer collateral agreement)
what is a CASS resolution pack
specific documents and information relating to client money and assets which must be available to the regulator on request
what are mandate accounts
where a client gives a firm control over their assets or liabilities e.g. direct debits
what do the mandate rules require firms to do
establish and maintain records and internal controls to prevent any misuse of the mandate authority granted by the client
when is a mandate not required
if the business relates to a reinsurance contract
how is a mandate usually provided
through the firms terms of business
when do CASS 7 and CASS 6 not apply with respect to madates
where a client has a mandate with a firm over the control of their assets held at a third party
