This post was written by Ciara Davies
The FCA has issued two letters addressed to CEOs of firms, which hold client money and/or custody assets as part of their business, to remind them of their obligations under CASS.
These letters highlight areas that are important to maintaining adequate client assets arrangements. Firms need to carefully consider which sections apply to their arrangements.
The FCA’s client assets regime is designed to protect consumers’ money and custody assets. Consumers need to have confidence that their assets will be protected even in the event of insolvency.
The FCA highlights COVID-19 and the end of the EU withdrawal transition period as being key events that affect the entities regulated by the FCA is ways which are difficult if not possible to predict. To that end, firms need to review their client asset arrangements in light of the current economic environment. Where firms detect deficiencies, they need to take immediate action to rectify them. Firms are also expected to notify the FCA of any material concerns identified when reviewing the adequacy of their client asset arrangements.
To review the letters and to see other letters the FCA has recently issued please click on the link.