Client Assets Source Book CASS

Question 1

What does the Clients’ Assets and Client Money Rules (Client Assets source book CASS) sit outside of?

Answer 1

COBs and MiFID

Question 2

What are the 4 key points of the CASS?

Answer 2

• Fiduciary duty (safe)
• Custody of clients’ assets (segregated)
• Use of clients’ assets (recorded)
• Reconciliation of clients’ assets (reconcile)

Question 3

Explain Fiduciary duty in terms of CASS

Answer 3

o Custodians under a fiduciary duty to act in the best interests of their clients

Question 4

Explain Custody of clients’ assets in terms of CASS

Answer 4

o Custody rules designed primarily to restrict the co-mingling of client and firm assets

Question 5

Explain use of clients’ assets in terms of CASS

Answer 5

o A firm most not enter into securities-financing transactions (e.g. stock lending or repurchase agreements) unless:

• The client has given prior consent; and
• Use is restricted to the specified terms to which the client consents

Question 6

Explain Reconciliation of clients’ assets in terms of CASS

Answer 6

o As often as is necessary; and

o As soon as reasonably practicable after reconciliation date