Template:Nutshell CASS Treatment of shortfalls

CASS 6.6.54 R applies where there is an unresolved shortfall.

(1) Until it is resolved, the firm must either:

(a) hold enough applicable assets to cover the shortfall and, in doing so:

(i) separate the applicable assets from the firm’s own property, recording them in its client-specific safe custody asset record as being held for the relevant client;

(ii) record the shortfall, the relevant clients, and the applicable assets the firm has appropriated; and

(iii) update that record whenever the discrepancy is resolved; or

(b) hold enough money to cover the shortfall as client money and, in doing so:

(i) ensure it is segregated and recorded as being held for the relevant client;

(ii) record the shortfall, the relevant clients, and amount of money the firm has appropriated; and

(iii) update that record whenever the discrepancy is resolved; or

(c) a combination of the two.

(3) If another person is responsible for the discrepancy then the firm must take all reasonable steps to quickly resolve the situation. Until it is resolved the firm must consider whether it should notify the affected clients, and may take steps under (2) for the treatment of shortfalls until that discrepancy is resolved.