CP13/5: Review of the client assets regime for investment business

Our proposals aim to enhance our client assets regime to achieve better results for consumers and increase confidence in financial markets.

Why are we consulting on this Consultation Paper (CP)?

The client assets regime applies to around 1,500 regulated firms that safeguard and administer assets and/or hold client money. They collectively hold more than £10tn of custody assets and more than £100bn of client money.

Protecting client assets is fundamental to consumers’ rights and the trust they place with firms that are often acting as their agents, fiduciaries and/or counterparties. It is at the heart of ensuring a well-functioning and robust market place.

Who is this CP aimed at?

This will interest:

• firms that carry out investment business that are subject to the client assets sourcebook (CASS)
• auditors that provide client assets audit reports and  reports on different or alternative approaches/methods permitted by CASS
• third party providers who provide back office functions that firms use for their client assets operations
• market infrastructure firms, including Central Counterparties, exchanges and other intermediaries with whom firms may place client assets.
• banks with whom firms place client money
• insolvency practitioners and their advisers that would be responsible for distributing client assets if a firm that holds client assets starts insolvency proceedings

Consultation paper 13/5[1]

The consultation period for CP13/5 closed on 11 October 2013.

Want to find out more?

For more information:

• view the FCA Handbook[2].