The FSA’s regulations for CASS resolution packs becomes active on the 1st October 2012. The main objective of the CASS resolution pack is to clearly provide signposts to a company’s insolvency practitioner to help swiftly resolve any returning of client money and assets to clients.
The new legislation requires firms to be able to find the information described in the resolution pack as soon as possible and in any event within the period of 48 hours. To sum up what is required the pack must include the following:
• the place where copies of executed agreements can be found.
• details of any third party that have been used to perform CASS operational functions as well as a document which provides specific instructions about how to access relevant information that is held by a third party.
• the means to process a transfer of any client money or assets;
• copies of the organisation’s processes for the management, recording and transfer of the client money and safe custody assets that it holds.
Find out more specific information about the exact credentials that are required under the new FSA regulations by referring to the article that we published back in May.
The FSA has selected CASS compliance as of its core regulatory risks in its 2012/13 Business Plan. The requirement for each company to prepare and maintain a resolution pack means that it will be much easier for the FSA to carry out inspections and assess a firm’s compliance with these regulations.
Firms should be aware that there will be a higher frequency of thematic reviews that will specifically focus on the existence and usability of these resolution packs. Firms that do not prepare or maintain them will be in breach of the new regulations.
If you are affected by this new FSA legislation, IMS has put together a navigation pack that clearly states all the requirements and provides a basis for collecting the information required by the new rules in a transparent and consistent manner.
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