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Status: You are viewing the version of the handbook as on 2009-03-31.

CASS 1.2 General application: who? what?

General application: who?

CASS 1.2.1GRP

The rules in CASS 1.2 set out the maximum scope of this sourcebook. The application of CASS is modified for certain activities by 1CASS 1.4. Also particular chapters or sections of CASS may have provisions which limit their application.

CASS 1.2.2RRP

CASS applies to every firm, except as provided for in CASS 1.2.3 R, with respect to the carrying on of:

  1. (1)

    all regulated activities except to the extent that a provision of CASS provides for a narrower application; and

  2. (2)

    unregulated activities to the extent specified in any provision of CASS.

CASS 1.2.3RRP

CASS does not apply to:

  1. (1)

    an ICVC; or

  2. (2)

    an incoming EEA firm other than an insurer, with respect to its passported activities; or

  3. (3)

    a UCITS qualifier.

CASS 1.2.4RRP

With the exception of this chapter and the insurance client money chapter, CASS does2 not apply to:

2
  1. (1)

    an authorised professional firm with respect to its non-mainstream regulated activities; or

  2. (2)

    the Society.

CASS 1.2.5RRP

1The insurance client money chapter2 does not apply to an authorised professional firm with respect to its non-mainstream regulated activities, which are insurance mediation activities, if:

2
  1. (1)

    the firm's designated professional body has made rules which implement article 4 of the Insurance Mediation Directive;3

    3
  2. (2)

    those rules have been approved by the FSA under section 332(5) of the Act; and

  3. (3)

    the firm is subject to the rules in the form in which they were approved.

CASS 1.2.6G

[deleted]2

2

General application: what?

CASS 1.2.7GRP
  1. (1)

    The approach in CASS is to ensure that the rules in a chapter are applied to firms in respect of particular regulated activities or unregulated activities.

  2. (2)

    The scope of the regulated activities to which CASS applies is determined by the description of the activity as it is set out in the Regulated Activities Order. Accordingly, a firm will not generally be subject to CASS in relation to any aspect of its business activities which fall within an exclusion found in the Regulated Activities Order. The definition of designated investment business includes, however, activities within the exclusion from dealing in investments as principal in article 15 of the Regulated Activities Order (Absence of holding out etc).

  3. (3)

    The custody chapter and the client money chapter apply in relation to regulated activities, conducted by firms, which fall within the definition of MiFID business and/or designated investment business.5

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  4. (3A)

    The collateral rules apply in relation to regulated activities, conducted by firms, which fall within the definition of designated investment business (including MiFID business).2

  5. (4)

    The insurance client money chapter2 applies in relation to regulated activities, conducted by firms, which fall within the definition of insurance mediation activities.1

    2
  6. (5)

    [deleted]52

    5
  7. (6)

    The mandate rules apply in relation to regulated activities, conducted by firms, which fall within the definition of designated investment business (including MiFID business) and insurance mediation activity, except where it relates to a reinsurance contract.2

Application for 2retail clients, professional clients and eligible counterparties2

CASS 1.2.8GRP
  1. (1)

    CASS applies directly in respect of activities conducted with or for all categories of clients.2

    2
  2. (2)

    [deleted]5

    2225
  3. (3)

    The insurance client money chapter2 does not generally distinguish between different categories of client. However, the term consumer 4is used for those to 4whom additional obligations are owed, rather than the term retail client.2 This is to be consistent with the client categories used in 1the Insurance: New Conduct of Business sourcebook4.

    2424
  4. (4)

    Each provision in the custody chapter and the client money chapter makes it clear whether it applies to activities carried on for retail clients, professional clients or both. There is no further modification of the rules in these chapters in relation to activities carried on for eligible counterparties. Such clients are treated in the same way as other professional clients for the purposes of these rules.2

    555
CASS 1.2.9G

[deleted]2

2

Investments and money held under different regimes

CASS 1.2.10R

2[deleted]5

5
CASS 1.2.11RRP

2Where a firm is subject to the client money chapter and5 the insurance client money chapter ,5 it must ensure segregation between money held under each chapter, including that money held under different chapters is held, in different, separately designated, client bank accounts or client transaction accounts.

55
CASS 1.2.12GRP

2The purpose of the rules regarding the segregation of investments and money held under different regimes is to reduce the risk of confusion between assets held under different regimes either on an on-going basis or on the failure of a firm or a third party holding those assets.

CASS 1.2.13GRP

2A firm may opt to hold under a single chapter money that would otherwise be held under different chapters (see CASS 5.1.1 R (3) and CASS 7.1.3 R5).

555