Custody rules - CASS Provision

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CASS Anatomy


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 This resource therefore may well be out of date, even if it was accurate once, which it might not have been.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 - Custody rules

6.1 Application
6.2 Holding of client assets

6.2.1 Requirement to protect clients' safe custody assets
6.2.2 Requirement to have adequate organisational arrangements
6.2.3 Registration and recording of legal title
6.2.4 (Nominee companies)
6.2.5 Recording title to safe custody assets
6.2.6 (Adequate investigations)
6.2.7 (documents of title to bearer assets)

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

6.4 Use of safe custody assets
Template:CASS Section 6.5 TOC 6.6 Template:Records, accounts and reconciliations (From 1/6/2015)

6.6.54 Treatment of shortfalls