FCA client asset rules

This overview is a guide to the Lexis+® UK Financial Services content within the client assets sub-topic, with links to the appropriate materials.

Principle for Business 10 states that 'a firm must arrange adequate protection for clients' assets when it is responsible for them'.

This requirement is supported by the rules in the Client Assets Sourcebook (CASS) section of the Financial Conduct Authority (FCA) Handbook.

The purpose of the rules in CASS is to ensure that the assets of a client are kept separate from the assets of a firm, so that, in the event of a firm's insolvency, a client's assets are protected and are returned to a client in a timely fashion.

The rules also ensure that firms are not able to use client assets for their own purposes. A firm also has to keep records showing the ownership of assets held, details of where they are held, and tracking what is done with them.

The term 'client' includes every category of client, ie retail, professional and eligible counterparty.