The collapse of Lehman Brothers exposed a multi-billion shortfall in segregated client accounts, forcing much stricter rules on how a firm should separate client money from its own cash.
In 2014 the FCA reviewed the client assets regime and made material changes to the rules. The aim was and is to continue to offer better protection and speed up the recovery of client assets if the business collapses.
The subject of Client money and Client assets remains high on the FCA’s agenda, actions against firms continue to be taken by the FCA. Most notably the £126 million fine of a US banks London branch for failure to segregate client and company cash. Fines and their reputational damage aside, the new rules post significant commercial and operational challenges.
This very practical 1 day course conducted by an expert with over 20 years of experience within the sector will provide a thorough overview of the CASS regulation, its scope and requirements and prepare participants to effectively comply with it. You will learn about the principles of clients' money and asset protection, how to segregate and hold funds and keep records. You will also learn about the reporting requirements and how to set up all the processes and operations in order to stay compliant.
What Will You Learn
By the end of this course you will learn about:
- Recognise the FCA’s concerns regarding Client Assets
- Understand your firm’s responsibilities when handling Client Money
- Assess the practical implications of your firm’s Client Asset responsibilities
- Consider the effectiveness of your current processes in the light of the enhanced regulation
- Identify the work required in complying with the December changes to regulation
- Investigate the application of the rules, drawing on lessons learned and good industry practice
Main Topics Covered During This Training
- The background to client asset protection
- CASS rules, scope and significance
- Defining client money and assets
- Defining CASS firm
- CASS Resolution Pack
- Common issues with managing clients money and assets
- Record keeping and reporting requirements
- Reconciliation requirements
- Governance process
The Course Director is a highly experienced financial services regulatory management and training consultant, previously a compliance director - Head of Compliance Monitoring & Regulatory Reporting, with an impressive commercial track record across financial services operations in a range of economic cycles.
His professional experience includes the development and implementation of compliant processes and procedures that include areas such as: governance and oversight; effective systems and controls; client on-boarding and market conduct projects. His clients include firms such as: Dresdner Kleinwort Wasserstein, AXA Framlington, Deutsche Bank and currently Woodford Investment Management.
In addition to consulting engagements, he delivers regulatory training courses on the subjects of Financial Crime, Client Assets, Conduct Risk, Governance and Oversight, Senior Management Regime, Effective Compliance Monitoring. He has worked closely with the Financial Ombudsman Service and the Finance and Lease Association on complaint handling and management.
The course is suitable for investment management companies, banks and firms providing supporting services and in particular professionals from the following departments:
- Product Development
- Risk Management
- Accounts and Finance
- Client Services
Venue to be announced shortly.