Collateral - CASS Provision: Difference between revisions
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{{a|cass|{{cassquote|{{CASS Section 3}}|3}}}}The much talked-about, seldom seen Rule {{cassprov|3}} of CASS, which says if you take [[Title transfer collateral arrangement|title to collateral]], or if you [[reuse]] [[Security collateral arrangement|collateral that was pledged to you]] so that it is ''like'' you took title to it in the first place, and you have only an obligation to return an “[[equivalent]]” asset, then you have to keep decent books and generally be a good egg about it. | {{a|cass|{{cassquote|{{CASS Section 3}}|3}}}}The much talked-about, seldom seen Rule {{cassprov|3}} of CASS, which says if you take [[Title transfer collateral arrangement|title to collateral]], or if you [[reuse]] [[Security collateral arrangement|collateral that was pledged to you]] so that it is ''like'' you took title to it in the first place, and you have only an obligation to return an “[[equivalent]]” asset, then you have to keep decent books and generally be a good egg about it. | ||
So: if you don’t take title, CASS {{cassprov|6}} ([[Custody assets - CASS Provision|custody]]) and CASS {{cassprov|7}} ([[client money]], with all its lovely exemptions) apply. | So: | ||
*if you ''don’t'' take title, CASS {{cassprov|6}} ([[Custody assets - CASS Provision|custody]]) and CASS {{cassprov|7}} ([[client money]], with all its lovely exemptions) apply. | |||
*if you ''do'' take title, CASS {{cassprov|3}} ([[Collateral - CASS Provision|collateral]], with all its lovely brevity) applies. | |||
For what it is worth (imho, a lot) CASS {{cassprov|3}} is ''much'' shorter and less confusing. | For what it is worth (imho, a lot) CASS {{cassprov|3}} is ''much'' shorter and less confusing. |
Latest revision as of 16:21, 2 June 2020
CASS Anatomy™
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The much talked-about, seldom seen Rule 3 of CASS, which says if you take title to collateral, or if you reuse collateral that was pledged to you so that it is like you took title to it in the first place, and you have only an obligation to return an “equivalent” asset, then you have to keep decent books and generally be a good egg about it.
So:
- if you don’t take title, CASS 6 (custody) and CASS 7 (client money, with all its lovely exemptions) apply.
- if you do take title, CASS 3 (collateral, with all its lovely brevity) applies.
For what it is worth (imho, a lot) CASS 3 is much shorter and less confusing.