Transitional Provisions and Schedules

Part

CASS Client Assets Sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 14/10/2024

Rulebook at: 01/01/2013

Transitional Provisions and Schedules

CASS TP 1

Transitional Provisions

CASS TP 1.1

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

CASS 2 to CASS 4

[deleted]

Every rule in the Handbook

Expired

[deleted]

CASS 5.1 to CASS 5.6

Apply in relation to money (and where appropriate designated investments) held by a firm on 14 January 2005 (being money or designated investments to which CASS 5.1 to CASS 5.6 would not otherwise apply) to the extent that such money (or designated investments) relate to business carried on before 14 January 2005 and which would, if conducted on or after 14 January 2005, be an insurance mediation activity.

Indefinitely

14 January 2005

Expired

Expired

Expired

Expired

[deleted]

CASS 6.3.5 R to CASS 6.3.8R

The rules listed in column (2) do not apply in relation to agreements executed before 1 April 2012.

1 April 2012 until 30 September 2012

1 April 2012

Notwithstanding the operation of CASS TP 1.1R(8A), a firm should as soon as reasonably practicable modify its agreement with that third party so as to meet the requirements of CASS 6.3.5 R to CASS 6.3.8 R.

CASS 6.1.6R (2) and CASS 6.1.6A R

[deleted]

CASS 7.2.3R (2) and CASS 7.2.3A R

[deleted]

01/07/2012

CASS Sch 1

Record keeping requirements

01/12/2004

CASS Sch 1.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant record keeping requirements.

01/12/2004

CASS Sch 1.2

It is not a complete statement of those requirements and should not be relied on as if it were.

01/12/2004

CASS Sch 1.3

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

CASS 1A.3.3 R

Allocation of the CASS oversight responsibilities in CASS 1A.3.1 R, of the CASS operational oversight function, or of the responsibilities in CASS 1A.3.1C R (2), as relevant

The person to whom the CASS oversight responsibilities have been allocated, subject to the provisions of CASS 1A.3.3 R, to whom the CASS operational oversight function has been allocated in accordance with CASS 1A.3.1A R, or to whom the responsibilities in CASS 1A.3.1C R (2) have been allocated

Upon allocation

5 years (from the date the record was made)

CASS 1.4.12 R and, where applicable, CASS 1.4.13 R

For a firm which carries on auction regulation bidding, election (under CASS 1.4.9 R) to comply with CASS in respect of this activity and, where applicable, decision to discontinue use of that opt in

Record of this election or, where applicable, the decision to discontinue use of the opt in, including the date on which either is to be effective

Upon making the election or, where applicable, upon taking the decision to discontinue use of the opt in

5 years from the date on which the opt in ceases to be used

[deleted]

CASS 5.1.1 R (4)

Record of election of compliance with specified CASS rules

Record of compliance with specified CASS rules

Not specified

CASS 5.2.3 R (2)

Holding client money as agent

The terms of the agreement

Not specified

Six years

CASS 5.4.4 R (2)

Adequacy of systems and controls

Written confirmation of adequate systems and controls from its auditor

Not specified

CASS 5.5.84 R

Client money calculation

Whether the firm calculates its client money requirements according to CASS 5.5.84 R or CASS 5.5.84 R

Not specified

CASS 5.5.84 R

Transactions and commitments for client money

Explanation of the firm's transactions and commitments for client money

Not specified

Three years

CASS 5.8.3 R (1)

Client's title to a contract of insurance

Identity of such documents and/or property and dates received and delivered to client

Not specified

Three years

CASS 6.1.16CR (3)

A personal investment firm that temporarily holds a client's designated investments which is not in the course of MiFID business

Client details and any actions taken by the firm

5 years (from the making of the record)

CASS 6.1.16K R

Client custody assets which the firm has arranged for another to hold or receive

Full details

On receipt

5 years

[deleted]

CASS 6.3.1R (4)

Appropriateness of a firm's selection of a third party

Grounds upon which a firm satisfies itself as to the appropriateness of the firm's selection of a third party to hold safe custody assets belonging to clients

Date of the selection

5 years (from the date the firm ceases to use the third party to hold safe custody assets belonging to clients)

CASS 6.4.3 R

Details of clients and safe custody assets used for the firm's own account or the account of another client of the firm

Details of the client on whose instructions the use of the safe custody assets has been effected and the number of safe custody assets used belonging to each client

Maintain up to date records

5 years (from the date the record was made)

CASS 6.5.1 R

Safe custody assets held for each client and the firm's own applicable assets

All that is necessary to enable the firm to distinguish safe custody assets held for one client from safe custody assets held for any other client, and from the firm's own applicable assets

Maintain up to date records

5 years (from the date the record was made)

CASS 6.5.2 R

Safe custody assets held for clients

Accurate records which ensure theircorrespondence to the safe custody assets held for clients

Maintain up to date records

5 years (from the date the record was made)

CASS 6.5.2A R

Client agreements that include a firm's right to use safe custody assets for its own account

A copy of every executed client agreement that includes a firm's right to use safe custody assets for its own account

Maintain up-to-date records

5 years (from the date the record was made)

CASS 7.1.3R (2)

Record of election to comply with the client money chapter

Record of election to comply with the client money chapter, including the date from which the election is to be effective

Date of the election

5 years (from the date the firm ceases to use the election)

CASS 7.1.15C R

Record of election in relation to CASS 7.1.15C R

Date of election

Not specified

CASS 7.4.10 R

Appropriateness of a firm's selection of a third party

Grounds upon which a firm satisfies itself as to the appropriateness of the firm's selection of a third party to hold client money

Date of the selection

5 years (from the firm ceases to use the third party to hold client money)

CASS 7.6.1 R

Client money held for each client and the firm's own money

All that is necessary to enable the firm to distinguish client money held for one client from client money held for any other client, and from the firm's own money

Maintain up to date records

Five years (from the date the record was made)

CASS 7.6.2 R

Client money held for each client

Accurate records to ensure the correspondence between the records and accounts of the entitlement of each client for whom the firm holds client money with the records and accounts of the client money the firm holds in client bank accounts and client transaction accounts

Maintain up to date records

Five years (from the date the record was made)

CASS 7.6.7 R

Internal reconciliation of client money balances

Explanation of method of internal reconciliation of client money balances used by the firm, and if different from the standard method of internal client money reconciliation, an explanation as to how the method used affords equivalent degree of protection to clients, and how it enables the firm to comply with the client money distribution rules

Date the firm starts using the method

5 years (from the date the firm ceases to use the method)

CASS 7A.3.8R (3)

Client money shortfall

Each client's entitlement to client money shortfall at the failed bank

Maintain up to date records

Until client is repaid

CASS 7A.3.10R (3)

Client money shortfall

Each client's entitlement to client money shortfall at the failed bank

Maintain up to date records

Until client is repaid

CASS 7A.3.11R (3)

Client money shortfall

Each client's entitlement to client money shortfall at the failed bank

Maintain up to date records

Until client is repaid

CASS 7A.3.17R (3)

Client money shortfall

Each client's entitlement to client money shortfall at the failed intermediate broker, settlement agent or OTC counterparty

Maintain up to date records

Until client is repaid

CASS 8.3.1 R

Adequate records and internal controls in respect of the firm's use of mandates (see CASS 8.3.2R (1) to CASS 8.3.2R (5) )

Up to date list of firm's mandates and any conditions regarding the use of mandates, all transactions entered into, details of procedures and internal controls for giving and receiving of instructions under mandates, and important client documents held by the firm

Maintain current full details

Not specified

CASS 10.1.3 R

A firm's CASS resolution pack

The documents to which CASS 10.2 and CASS 10.3 refer

From the date on which a firm becomes subject to CASS 10.1.3 R

None is specified

01/01/2013

CASS Sch 2

Notification requirements

01/12/2004

CASS Sch 2.1

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

CASS 1A.2.5 R

Election to be treated as a CASS medium firm or a CASS large firm

The fact of that election

To be made at least one week before the election is intended to take effect

CASS 1A.2.8 R (1) - (3)

[deleted]

CASS 1A.2.8 R (4)

[deleted]

CASS 1A.2.8A R

[deleted]

CASS 1A.2.9 R (1) - (3)

The highest total amount of client money and the highest total value of safe custody assets held by a firm, as more fully described in CASS 1A.2.9 R

The highest total amount of client money and safe custody assets held by a firm, as more fully described in CASS 1A.2.9 R.

The need to comply with CASS 1A.2.9 R (1)- (3)

By the fifteenth business day of January unless contrary provision is made in CASS 1A.2.9 R

CASS 1A.2.9 R (4)

A firm's 'CASS firm type' classification

The need to comply with CASS 1A.2.9 R (4)

At the same time the firm makes the notification under CASS 1A.2.9 R (1), (2) or (3)

CASS 1A.3.2 R

[deleted]

CASS 5.5.84 R

Failure of bank, broker or settlement agent

Full details including whether it intends to make good any shortfall that may have arisen in the amounts involved

As soon as the firm becomes aware

Immediately

CASS 5.5.84 R

Inability to perform the calculation required by CASS 5.5.84 R

Inability to perform the calculation

Immediately

CASS 5.5.84 R

Inability to make good any shortfall identified by CASS 5.5.84 R

Inability to make good any shortfall in client money

Inability to make good any shortfall

Immediately

CASS 5.5.84 R

Inability to comply with the requirements in CASS 5.5.84 R; CASS 5.5.84 R; CASS 5.5.84 R; CASS 5.5.84 R; CASS 5.5.84 R

Inability to comply with the requirements of the rules listed

As soon as reasonably practicable

CASS 6.5.13R (1)

Non-compliance or inability, in any material respect, to comply with the requirements in CASS 6.5.1 R (Records and accounts), CASS 6.5.2 R (Records and accounts, including internal reconciliations) or (Reconciliations with external records)

The fact that the firm has not complied or is unable, in any material respect, to comply with the requirements and the reasons for that

Non-compliance or inability, in any material respect, to comply with the requirements

Without delay

CASS 6.5.13R (2)

Non-compliance or inability, in any material respect, to comply with the requirements in CASS 6.5.10 R (Reconciliation discrepancies)

The fact that the firm has not complied or is unable, in any material respect, to comply with the requirements and the reasons for that

Non-compliance or inability, in any material respect, to comply with the requirements

Without delay

CASS 7.4.35 R

LME bond arrangements

Issue of an individual letter of credit issued by the firm

Upon issue of an individual letter of credit under an LME bond arrangement

Immediately

CASS 7.6.16R (1)

Non-compliance or inability, in any material respect, to comply with the requirements in CASS 7.6.1R (Records and accounts), CASS 7.6.2R (Records and accounts, including internal reconciliations) or CASS 7.6.9R (Reconciliations with external records)

The fact that the firm has not complied or is unable, in any material respect, to comply with the requirements and the reasons for that

Non-compliance or inability, in any material respect, to comply with the requirements

Without delay

CASS 7.6.16R (2)

Non-compliance or inability, in any material respect, to comply with the requirements in CASS 7.6.13R to CASS 7.6.15R (Reconciliation discrepancies)

The fact that the firm has not complied or is unable, in any material respect, to comply with the requirements and the reasons for that

Non-compliance or inability, in any material respect, to comply with the requirements

Without delay

CASS 7A.3.19R (1)

Failure of a third party with which money is held - i.e.: bank, intermediate broker, settlement agent or OTC counterparty or other entity with which it has placed or to which it has passed client money

Full details

Firm becomes aware of the failure of the entity

As soon as the firm becomes aware

CASS 7A.3.19R (2)

Intentions regarding making good any shortfall that has arisen or may arise, and of the amounts involved

Failure of third party with which client money is held

As soon as reasonably practical

CASS 10.1.16 R

If a firm has not complied with, or is unable to comply with, CASS 10.1.3 R

The fact of that firm's non-compliance or inability to comply with the rule in CASS 10.1.3 R

Non-compliance or inability to comply with CASS 10.1.3 R

Immediately (as per CASS 10.1.16 R)

01/01/2013

CASS Sch 3

Fees and other required payments

01/12/2004

CASS Sch 3.1

There are no requirements for fees or other payments in CASS.

01/12/2004

CASS Sch 4

Powers exercised

01/12/2004

CASS Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in CASS:

Section 138 (General rule-making power)

Section 139(1) (Miscellaneous ancillary matters)

Section 149 (Evidential provisions)

Section 156 (General supplementary powers)

01/12/2004

CASS Sch 4.2

The following powers in the Act have been exercised by the FSA to give the guidance in CASS:

Section 157(1) (Guidance)

01/12/2004

CASS Sch 5

Rights of actions for damages

01/12/2004

CASS Sch 5.1

The table below sets out the rules in CASS contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention

If a 'Yes' appears in the column headed 'For private person?', the rule may be actionable by a 'private person' under section 150 (or, in certain circumstances, his fiduciary or representative; see article 6(2) and (3)(c) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256)). A 'Yes' in the column headed 'Removed' indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

The column headed 'For other person?' indicates whether the rule may be actionable by a person other than a private person (or his fiduciary or representative) under article 6(2) and (3) of those Regulations. If so, an indication of the type of person by whom the rule may be actionable is given.

01/12/2004

CASS Sch 5.2

Chapter / Appendix

Section / Annex

Paragraph

Right of action under section 150

For private person?

Removed?

For other person?

All rules in CASS with the status letter "E"

All other rule in CASS.

Yes

01/12/2004

CASS Sch 6

Rules that can be waived

01/12/2004

CASS Sch 6.1

As a result of regulation 10 of the Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (SI 2007/1973) the FSA has power to waive all its rules, other than rules made under section 247 (Trust scheme rules) or section 248 (Scheme particulars rules) of the Act. However, if the rules incorporate requirements laid down in European directives, it will not be possible for the FSA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives.

06/01/2011