What are the Client Assets Sourcebook rules?
The Client Assets Sourcebook (CASS) rules, set by the UK's Financial Conduct Authority (FCA), govern how financial firms hold and safeguard client money and assets. These rules apply to FCA-registered firms in the UK to ensure client funds are protected and separate from the firm's own assets.
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What are the key principles of the Client Assets Sourcebook (CASS)?
The FCA’s client money rules are underpinned by the following key principles:
- Clear identification of client money
- Strict segregation of client assets
- Robust record-keeping and reconciliations
- Establishing trust status over client money accounts
The rules set out in the CASS can be found in the FCA Handbook.
What are the challenges of complying with the CASS rules?
Some of the primary challenges of safeguarding client money include:
- Maintaining accurate client money records
- Ensuring timely client money allocation
- Navigating complex rules around bad debt provisioning
Managing the ongoing costs and resources needed for a strong CASS compliance program.
What resources are available to help financial institutions understand and comply with the CASS rules?
UK financial firms can access a range of resources for CASS compliance. The FCA website offers the official sourcebook, guidance notes, and FAQs. Industry bodies provide sector-specific guidance, while compliance consultancies, such as Global Relay, can provide wide-ranging support including advice, training, and compliance tools.