Collateral - CASS Provision

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CASS Anatomy

Klicken hier für die original CASS rule 3.1.

IMPORTANT: CASS changed quite a bit after MiFID II. This resource therefore may well be out of date, even if it was accurate once, which it might not have been.

This is an article about the FCA’s custody and client money rules — client assets — and is fondly known by its chapter in the FCA Sourcebook Table of Contents | 1 | 1A | 3 | 5 | 6 (custody rules) | 7 (client money rules) | 7A | 8 | 9 (PBDA) | 10

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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.


  • 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.