6.3.4A - CASS Provision

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CASS Anatomy


6.3.4A A firm must have entered into a written agreement with any person with whom it deposits clients' safe custody assets under CASS 6.3.1 R, or with whom it arranges safeguarding and administration of assets which are clients' safe custody assets. This agreement must, at minimum:

(1) set out the binding terms of the arrangement between the firm and the third party;
(2) be in force for the duration of that arrangement; and
(3) clearly set out the custody service(s) that the third party is contracted to provide.


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 This resource therefore may well be out of date, even if it was accurate once, which it might not have been.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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6.3 Depositing assets and arranging for assets to be deposited with third parties

6.3.1 - Criteria for depositing assets with a third party
6.3.2 - Considerations when discharging obligations under this part
6.3.3 - Issues firms should address in their agreements with third party custodians
6.3.4 - Suitable jurisdictions for the deposit of safe custody assets
6.3.4A - Third-party custody agreements
6.3.4B - Third-party custody agreements
6.3.5 - Agreements with third party custodians not to contain security interests ...
6.3.6 - ... er, except in the following cases
6.3.7 - When a firm is considered to be acting on the instructions of a professional client
6.3.8 - Safe custody asset includes client money
6.3.9 - And don't think this provision allows a right of set-off