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CASS 8.2 Definition of Mandate
A mandate is any means that give a firm the ability to control a client's assets or liabilities, which meet the conditions in (1) to (5):
- (1) they are obtained by the firm from the client, and with the client's consent;
- (2) they are in written form at the time they are obtained from the client;
- (3) they are retained by the firm;
- (4) they put the firm in a position where it is able to give any or all of the types of instructions described in (a) to (d):
- (a) instructions to another person in relation to the client's money that is credited to an account maintained by that other person for the client;
- (b) instructions to another person in relation to any money to which the client has an entitlement, where that other person is responsible to the client for that entitlement (including where that other person is holding client money for the client in accordance with CASS 5 or CASS 7);
- (c) instructions to another person in relation to an asset of the client, where that other person is responsible to the client for holding that asset (including where that other person is safeguarding and administering investments, acting as trustee or depositary of an AIF or acting as trustee or depositary of a UCITS);
- (d) instructions to another person such that the client incurs a debt or other liability to that other person or any other person (other than the firm); and
- (5) their circumstances are such that the client's further involvement would not be necessary for the firm's instructions described in 4(a) to 4(d) to be given effect.
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Per the guidance from CASS 8.2.2, "a mandate can take any written form and need not state that it is a mandate. For example it could take the form of a standalone document containing certain information or conferring a certain authority on the firm, a specific provision within a document or agreement that also relates to other matters, or a combination of provisions within a number of documents which together meet the conditions in CASS 8.2.1
So says Eversheds:
The mandate rules (CASS 8) require firms carrying on investment business or insurance mediation business to establish and maintain certain internal controls when they have mandates to reduce the risk of a firm misusing a mandate. As the rules are currently drafted this only applies in relation to mandates received in written form. The FCA is proposing to extend this to all mandates that a firm receives that are not in written form (for example credit card details provided over the telephone).
Update to {{anat|cass}}