Changes To The UKs Client Asset Source Book (CASS) – Harder, Better, Faster, Stronger

The collapse of Lehmans Brothers and MF Global outlined commercial challenges in respect of client assets and client money, including the role of regulated investment firms, the regulator, administrators and external auditors and focused attention on the management and protection of client money and assets, to avoid the impact of an insolvency.

Following a detailed review by the Financial Conduct Authority (the FCA) of its legislative framework, the FCA introduced significant changes to the rules that govern investment firm's conduct when handling client money and custody assets, aimed at improving firm's systems and controls around segregation, record keeping and reconciliations. Amongst other things, investment firms will need to provide the FCA with clear reporting of how their funds are being handled and where the assets are located.