Table of Contents
What are client assets?
Client assets are defined as assets which belong to a client but held by an investment firm for investment purposes. Examples of assets include cash, equities and bonds.
What are custody assets?
Custody Assets means an asset that is held by us on a client’s behalf, as defined in the FCA Handbook of rules and guidance.
What are client provided assets?
For the purpose of this paper, client assets are defined as money, securities and positions which are held or controlled by authorised investment firms for investment purposes on behalf of their customers.
Where are the FCA’s client asset rules set out?
You must follow rules set out in the Client Assets Sourcebook (CASS) whenever you hold or control client money or safe custody assets as part of your business. This is to keep client money and assets safe if firms fail and exit the market.
Is client money an asset?
The term ‘client money’ is used to describe a variety of arrangements in which the reporting entity holds funds on behalf of clients. If both conditions apply, the client money should be recognised as an asset of the reporting entity.
What is custody of assets involved in a transaction?
Custody of assets involved in the transactions: This duty refers to the actual physical possession or effective physical control/safekeeping of property.
What are client assets for a bank?
client assets means any property other than client money that a market intermediary holds but whose beneficial owner is the client, regardless of the legal title.
What does controlling client money mean?
What does controlling client money mean? Having access to the client’s bank or building society account including taking direct debits in the firm’s favour; and. Holding a client’s credit card details including debiting money from the credit card.
What is client assets Sourcebook?
The FCA’s Client Assets Sourcebook (CASS) provides rules for firms to follow whenever the firm holds or controls client money or safe custody assets. CASS helps ensure the safety of client money and assets if a firm fails and leaves the market. CASS has many recordkeeping requirements listed throughout.
Is a client bank account an asset or liability?
Example 1: A bank which holds money on deposit in a customer’s bank account should record a financial asset (cash) on initial receipt and a financial liability (customer deposits).