Template:Nutshell CASS Treatment of shortfalls: Difference between revisions

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CASS {{cassprov|6.6.54}} R applies where there is an unresolved {{fcaprov|shortfall}}.<br>
CASS {{cassprov|6.6.54}}R applies where there is an unresolved {{fcaprov|shortfall}}. Until it is resolved the {{fcaprov|firm}} must:
:(1) Until it is resolved, the {{fcaprov|firm}} must either:
*segregate and hold sufficient money or {{fcaprov|applicable assets}} ''in [[custody]]'' to cover the {{fcaprov|shortfall}} away from its own property;
::(a) hold enough {{fcaprov|applicable assets}} to cover the {{fcaprov|shortfall}} and, in doing so: <br>
*record the {{fcaprov|shortfall}}, the relevant {{fcaprov|client}}s, and the relevant money and {{fcaprov|applicable assets}} being held, and
:::(i) separate the {{fcaprov|applicable assets}} from the {{fcaprov|firm}}’s own property, recording them in its {{fcaprov|client-specific safe custody asset record}} as being held for the relevant {{fcaprov|client}}; <br>
*update that record as soon as the discrepancy is resolved. <br>
:::(ii) record the {{fcaprov|shortfall}}, the relevant {{fcaprov|client}}s, and the {{fcaprov|applicable assets}} the {{fcaprov|firm}} has appropriated; and <br>
If the shortfall is a third party’s fault the {{fcaprov|firm}} must take all reasonable steps to quickly resolve the situation. Until it is resolved the {{fcaprov|firm}} must consider whether it should notify the affected {{fcaprov|client}}s, and may take steps for the treatment of {{fcaprov|shortfall}}s until that discrepancy is resolved. <br>
:::(iii) update that record whenever the discrepancy is resolved; or
::(b) hold enough money to cover the {{fcaprov|shortfall}} as {{fcaprov|client money}} and, in doing so: <br>
:::(i) ensure it is segregated and recorded as being held for the relevant {{fcaprov|client}}; <br>
:::(ii) record the {{fcaprov|shortfall}}, the relevant {{fcaprov|client}}s, and amount of money the {{fcaprov|firm}} has appropriated; and <br>
:::(iii) update that record whenever the discrepancy is resolved; or
::(c) a combination of the two.
:(3) If another {{fcaprov|person}} is responsible for the discrepancy then the {{fcaprov|firm}} must take all reasonable steps to quickly resolve the situation. Until it is resolved the {{fcaprov|firm}} must consider whether it should notify the affected {{fcaprov|client}}s, and may take steps under (2) for the treatment of {{fcaprov|shortfall}}s until that discrepancy is resolved. <br>

Latest revision as of 12:56, 22 November 2019

CASS 6.6.54R applies where there is an unresolved shortfall. Until it is resolved the firm must:

If the shortfall is a third party’s fault the firm must take all reasonable steps to quickly resolve the situation. Until it is resolved the firm must consider whether it should notify the affected clients, and may take steps for the treatment of shortfalls until that discrepancy is resolved.

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