6.3.4B - CASS Provision

CASS Anatomy™ Go Premium 6.3.4B (G) A firm should consider carefully the terms of any agreement entered into with a third party under CASS 6.3.4A R. The following terms are examples of the issues that should be addressed in these agreements (where relevant): (1) that the title of the account in the third party’s books and records indicates that any safe custody asset credited to it does not belong to the firm; (2) that the third party will hold or record a safe custody asset belonging to the firm’s client separately from any applicable asset belonging to the firm or to the third party; (3) the arrangements for registration or recording of the safe custody asset, if this will not be registered in the firm’s client’s name; (4) the restrictions over the circumstances in which the third party may withdraw assets from the account; (5) the procedures and authorities for the passing of instructions to, or by, the firm; (6) the procedures for the claiming and receiving of dividends, interest payments and other entitlements accruing to the firm's client; and (7) the provisions detailing the extent of the third party’s liability in the event of the loss of a safe custody asset caused by the fraud, wilful default or negligence of the third party or an agent appointed by him. (View Template) 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 This resource therefore may well be out of date, even if it was accurate once, which it might not have been.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 SourcebookTable of Contents | 1 | 1A | 3 | 5 | 6 (custody rules) | 7 (client money rules) | 7A | 8 | 9 (PBDA) | 10 Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

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