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CASS 11.2 Firm classification

CASS 11.2.1R
  1. (1)

    A CASS debt management firm must, once every year and by the time it is required to make a notification in accordance with CASS 11.2.4 R, determine whether it is a CASS large debt management firm or a CASS small debt management firm according to the amount of client money which it held during the previous year or, if it did not hold client money during the previous year, according to the amount of client money it projects to hold in the following year, in each case using the limits set out in the table in CASS 11.2.3 R.

  2. (2)

    For the purpose of determining its 'CASS debt management firm type' in accordance with CASS 11.2.3 R, a CASS debt management firm must:

    1. (a)

      if it currently holds client money, calculate the highest total amount of client money held during the previous calendar year ending on 31 December and use that figure to determine its 'CASS debt management firm type';

    2. (b)

      if it did not hold client money in the previous calendar year but projects that it will do so in the current calendar year, calculate the highest total amount of client money that it projects that it will hold during that year and use that figure to determine its 'CASS debt management firm type'.

CASS 11.2.2R

For the purpose of calculating the value of the total amounts of client money that it holds on any given day during a calendar year (in complying with CASS 11.2.1 R) a CASS debt management firm must base its calculation on accurate internal records of client money holdings. A CASS large debt management firm must do this using the internal reconciliations performed during the previous year that are prescribed in CASS 11.11.13 R. A CASS small debt management firm must use the records used in carrying out checks required of it under CASS 11.11.8 R1.

CASS 11.2.3R

CASS debt management firm types

CASS debt management firm type

Highest total amount of client money held during the CASS debt management firm's last calendar year or as the case may be that it projects that it will hold during the current calendar year

CASS large debt management firm

An amount equal to or greater than £1 million

CASS small debt management firm

Less than £1 million

Notification

CASS 11.2.4R

Once every calendar year, a CASS debt management firm must notify the FCA, in writing, of the information in (1), (2) or (3), as applicable, and the information in (4), in each case no later than the day specified in (1) to (4):

  1. (1)

    if it held client money in the previous calendar year, the highest total amount of client money held during the previous calendar year, notification of which must be made no later than the fifteenth business day of January; or

  2. (2)

    if it did not hold client money in the previous calendar year but at any point up to the fifteenth business day of January the firm projects that it will do so in the current calendar year, the highest total amount of client money that the firm projects that it will hold during the current calendar year, notification of which must be made no later than the fifteenth business day of January; or

  3. (3)

    in any other case, the highest total amount of client money that the firm projects that it will hold during the remainder of the current calendar year, notification of which must be made no later than the business day before the firm begins to hold client money; and

  4. (4)

    in every case, of its 'CASS debt management firm type' classification, notification of which must be made at the same time the firm makes the notification under (1), (2) or (3).

CASS 11.2.5R

For the purpose of the annual notification in CASS 11.2.4 R, a CASS debt management firm must apply the calculation rule in CASS 11.2.2 R.

Option to be treated as a CASS large debt management firm

CASS 11.2.6G

CASS 11.2.7 R provides a CASS debt management firm with the ability to opt in to a higher category of 'CASS debt management firm type'. This may be useful for a CASS debt management firm whose holding of client money is near the upper categorisation limit for a CASS small debt management firm.

CASS 11.2.7R
  1. (1)

    Notwithstanding CASS 11.2.3 R, provided that the conditions in (2) are satisfied, a CASS debt management firm that would otherwise be classified as a CASS small debt management firm under the limits provided for in CASS 11.2.3 R may elect to be treated as a CASS large debt management firm.

  2. (2)

    The conditions to which (1) refers are that in either case:

    1. (a)

      the election is notified to the FCA in writing;

    2. (b)

      the notification in accordance with (a) is made at least one week before the election is intended to take effect; and

    3. (c)

      the FCA has not objected.

Effective date of firm type

CASS 11.2.8R

A firm's 'CASS debt management firm type' and any change to it takes effect:

  1. (1)

    if the firm notifies the FCA in accordance with CASS 11.2.4 R (1) or CASS 11.2.4 R (2), on 1 February following the notification; or

  2. (2)

    if the firm notifies the FCA in accordance with CASS 11.2.4 R (3), on the day it begins to hold client money; or

  3. (3)

    if the firm makes an election under CASS 11.2.7 R and provided the conditions in CASS 11.2.7 R (2) are satisfied, on the day the notification made under CASS 11.2.7 R (2)(a) states that the election is intended to take effect.

CASS 11.2.9G

Any written notification made to the FCA under this chapter should be marked for the attention of: "Debt Management Client Assets Firm Classification".