On 25 July 2012, the FSA published consultation paper CP 12/15 on “Client Assets Firm Classification, Oversight, Reporting and the Mandate Rules”. CP 12/15 is open for comment until 30 September 2012, and consults on possible changes in the following areas:
- CASS firm classification and operational oversight:
- clarifying that firms which only arrange safeguarding and administration of assets do not fall within the scope of CASS 1A;
- clarifying the date on which a firm becomes a CASS firm for the firm time or when it changes CASS categories;
- proposing changes to the procedure whereby a CASS small firm can opt to be treated as a CASS medium firm and a CASS medium firm can opt to be treated as a CASS large firm;
- Client money and assets return (“CMAR”):
- proposing amendments to the CMAR template regarding holding of safe custody assets and client money balances; and
- Clarifying the scope of the mandate rules in CASS 8, confirming that the rules do not apply to:
- a firm in relation to client money held by that firm in accordance with CASS 5 or CASS 7, or client money assets held by that firm in accordance with CASS 6; or
- an operator of a regulated collective investment scheme, in relation to activities carried on for the purpose, or in connection with, the operation of the scheme.
Fortunately, for those affected by CASS matters, the changes do not impact on the informational requirements forming part of the CASS Resolution Pack initiative, or the creation/maintenance of a CASS Resolution Pack more generally. The deadline for submission of a first CASS Resolution Pack remains as 1 October 2012.