6.4.1 - CASS Provision

CASS Anatomy™ Go Premium Template:CASS Section 6.4.1 (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 This resource therefore may well be out of date, even if it was accurate once, which it might not have been.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.

This doesn’t seem to have changed under MiFID 2. Except for being clear about the means for evidencing "express prior consent" which one would like to think is the same as prior express consent - a term used elsewhere in MiFID II, but then again one would like to think they could have used the SAME GODDAMN EXPRESSION in all places.

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6.4.1 in a Nutshell™ _{(cass edition)}

6.4.1

(1) General restriction on reuse: A firm may not use custody assets for securities financing transactions, or otherwise use those assets for its own account or any one else’s, unless:

(a) the client has given express prior consent to their use on specified terms; and

(b) the firm only uses them on those specified terms.

6.4.1(2) Omnibus accounts: A firm may not use custody assets for securities financing transactions that it holds on a client’s behalf in an omnibus account held by a third party, or otherwise use custody assets held in such an account for its own or any one else’s account unless, in addition to (1):

(a) each affected client in the omnibus account has given express prior consent as above; or

(b) the firm has in place systems to ensure that only assets belonging to those clients who have given express prior consent are used.

6.4.1(3) express prior consent of a retail client under this rule means the retail client’s signature (or equivalent).

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