On July 25, the UK Financial Services Authority (FSA) published a Consultation Paper Client Assets, Firm Classification, Oversight, Reporting and the Mandate Rules (CP12/15) in relation to two areas of client assets (CASS) policy – CASS oversight and reporting; and the mandate rules. The proposals set out in the Consultation Paper aim to:
clarify existing CASS firm classification, operational oversight and reporting requirements;
amend the language and presentation of some questions contained within the Client Money and Assets Return (which regulated firms holding client money are required to file) and its associated guidance notes based on industry feedback; and
clarify the scope of the mandate rules in chapter 8 of the CASS sourcebook.
The Consultation period lasts until September 30. The FSA intends to issue a policy statement in November, with revised rules coming into force on January 1, 2013.
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