The FCA’s changes to the Client Assets Protection Regime (CASS) are going to have a big impact on banks, brokers and asset managers. The shake-up will affect how businesses handle client money and assets – through customer relationships, outsourcing arrangements, operations, IT systems and the policies and procedures they have in place.
The failures of Lehman Brothers and MF Global demonstrated that the current rules are not fit for today’s complex financial markets. Although it dropped the controversial ‘speed proposal’, the FCA plans to do more work later this year on how to return assets more quickly to customers when a firm becomes insolvent.
The new CASS rules will come into force in stages. Some of the rules already took effect on 1 July 2014. On 1 December 2014 you’ll need to adopt the new rules that require repapering client documentation. And by 1 June 2015 you’ll need to implement many of the rules that require big changes to IT systems.
We believe that businesses need to act now. You need to assess what the impact will be and begin planning for implementation. Those who take steps to comply now and protect customer money will ensure they stand out for the right reasons.
Find out more by downloading our brochures or calling one of the team. The ‘Protecting client assets – the new rules’ brochure provides a high-level overview of the key messages within the Policy Statement; with the other two documents providing a more in-depth analysis of the main issues impacting asset managers and banks, deposit takers and securities firms respectively.