Client Assets Resolution Pack
Client Assets Resolution Pack

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Client Assets Resolution Pack
  • Background to the Client Assets Resolution Pack
  • What is the Client Asset Unit?
  • What is the Client Assets Resolution Pack?
  • Who do the CASS RP requirements apply to?
  • What is the objective of the CASS RP?
  • What are the key rules of the CASS RP?
  • What is the regulators' stance on the CASS RP?

Background to the Client Assets Resolution Pack

The collapse of firms such as Lehman Brothers International (Europe) (LBIE) in 2008 and MF Global UK Ltd in 2011 led to criticism of the Financial Services Authority's (FSA) requirements in the Client Assets Sourcebook (CASS), as insolvency practitioners had problems accessing information and records relating to client money and custody assets (CMCA). As a result, the FSA (which was the predecessor to the Financial Conduct Authority—FCA) observed that the standard of CASS compliance at many firms was too low. In 2010, the regulator therefore undertook to enhance its client assets requirements by improving the CASS rules (see, for example, the publication of consultation paper 10/09 (Enhancing the Client Assets Sourcebook) and increasing the resources the FSA devoted to the protection of CMCA (eg by establishing the Client Asset Unit to drive the FSA's specialist supervision of CMCA).

In addition, as part of proposals to introduce recovery and resolution plans ('RRPs' or 'living wills'), which were put forward by the Financial Stability Board to make the financial system safer, in August 2011, the FSA published the discussion and consultation paper CP11/16 Recovery and Resolution Plans. The consultation paper contained proposals for a CASS Resolution Pack (CASS RP), to provide the speedier return of CMCA upon a