Transitional Provisions and Schedules

Part

CASS Client Assets Sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 03/07/2024

Rulebook at: 01/01/2007

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

COB TP 1 to COB TP 4 apply to provisions in CASS in the same way as they did to the equivalent provisions included in COB 9 before 1 January 2004.

Indefinite

1 January 2004

Every rule in the Handbook

Expired

If a waiver granted before 1 January 2004 refers to a provision in COB 9 it will continue to be effective in relation to the equivalent provision in CASS.

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

CASS 5.1.5A R

A firm will satisfy the requirements of this paragraph, and money is client money, notwithstanding that an insurance undertaking which is the firm's counterparty to an agreement required by CASS 5.1.5A R has not given written consent to its interests under the trusts (or in Scotland agency) in CASS 5.3.2 R or CASS 5.4.7 R being subordinated to the interests of the firm's other clients.

14 January 2005 for 6 months

14 January 2005

CASS 5.3.2 R

The interests of a firm's clients which are insurance undertakings will rank equally with the interests of the firm's other clients.

14 January 2005 for 6 months

14 January 2005

CASS 5.4.7 R

A firm will satisfy the requirements of this rule notwithstanding that the deed referred to in CASS 5.8.3 R provides that money (and if appropriate designated investments) are held on terms which provide for the interests of the firm's clients which are insurance undertakings to rank equally with the interests of the firm's other clients.

14 January 2005 for 6 months

14 January 2005

CASS 5.5.65 R

A firm may for the purpose of calculating its client money resource disregard any money which the firm had before 14 January 2005 transferred to an intermediate broker in circumstances analogous to those described in CASS 5.5.84 R.

14 January 2005 for 12 months

14 January 2005

01/04/2005

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 2.1.9 R

A personal investment firm that temporarily holds a client's designated investments

Client details and any actions taken by the firm

3 years (from the making of the record)

CASS 2.3.6 R (1)(c)

Safe custody: arrangements for clients ordinarily outside the United Kingdom

The steps taken and result under CASS 2.3.6 R (1)(c)

On determination that client does not wish to execute agreement

3 years

CASS 2.6.15 R

Client custody assets held or received by or on behalf of a client or which the firm has arranged for another to hold or receive

Full details

On receipt

3 years

CASS 2.6.16 R

Safe custody investments used for stock lending activities

The identity of safe custody investments available to be lent, and those which have been lent

On receipt

3 years

CASS 4.3.111 R

Client money

Sufficient records to show and explain firm's transactions and commitments

Maintain current full details

3 years (after records made)

CASS 4.4.24 R (3)

Client money shortfall

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

Maintain up to date records

Until client repaid

CASS 4.4.25 R (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 repaid

CASS 4.4.31 R (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 repaid

CASS 4.5.5 R

Adequate records and internal controls in respect of the firm's use of mandates (see CASS 4.5.5 R (1) to (4))

Up to date list of firm's authorities, all transactions entered into, important client documents held by the firm

Maintain current full details

CASS 5.1.1 R (4)

Record of election of compliance with CASS 5.8 to CASS 5.8 provisions

Record of compliance with CASS 5.8 to CASS 5.8 provisions on client money

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

Mandates

Records of adequate internal controls for mandates

Not specified

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

14/01/2005

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 2.6.14 R (1)

Non-compliance with reconciliation requirements in CASS 2.6.2 R, CASS 2.6.4 R, CASS 2.6.6 R, CASS 2.6.8 R, CASS 2.6.10 R

Reason for Non-compliance

Non-compliance

Immediately

CASS 2.6.14 R (2)

Non-compliance of reconciliation requirements in CASS 2.6.11 R

Reason for Non-compliance once reconciliation carried out

Non-compliance

Immediately

CASS 4.3.64 R

Failure of a third party with which money is held - ie: 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

When firm becomes aware of the failure of the entity

Immediately

CASS 4.3.64 R

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

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

Failure of third party with which money is held

As soon as reasonably practical

CASS 4.3.87 R

Daily calculation required by CASS 4.3.66 R or CASS 4.3.67 R

Inability to perform daily calculation

Immediately

CASS 4.3.88 R

Daily calculation required by CASS 4.3.66 R or CASS 4.3.67 R

Inability to make good any shortfall identified by daily calculation

Inability to make good any shortfall identified by close of business on the day of calculation

Immediately

CASS 4.3.97 R

Requirements detailed in CASS 4.3.89 R, CASS 4.3.91 R, CASS 4.3.92 R, CASS 4.3.94 R and CASS 4.3.95 R.

Inability to comply with any of the requirements

As soon as possible

CASS 4.3.110 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 4.4.33 R (see CASS 4.3.64 R)

Failure of a third party with which money is held - ie: 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

When the firm becomes aware of the failure of the entity

Immediately

CASS 4.4.33 R (see CASS 4.3.64 R)

Failure of a third party with which money is held - i.e. bank, intermediate broker, settlement agent or OTC counterparty

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

Upon first delegation of regulated activity

As soon as reasonably practical

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

14/01/2005

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

The rules in CASS can be waived by the FSA under section 148 of the Act (Modification or waiver of rules).

01/12/2004