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Status: You are viewing the version of the handbook as on 2019-09-14.

CASS 13.2 Organisational requirements and responsibility for CASS operational oversight

CASS 13.2.1R

1A firm must, when holding client money, make adequate arrangements to safeguard the customer’s rights and prevent the use of client money for its own account.

CASS 13.2.2R

1A firm must introduce adequate organisational arrangements to minimise the risk of the loss or diminution of client money, or of rights in connection with client money, as a result of misuse of client money, fraud, poor administration, inadequate record-keeping or negligence.

CASS 13.2.3R

1A firm must allocate to a director or senior manager responsibility for:

  1. (1)

    oversight of the firm’s operational compliance with CASS 13;

  2. (2)

    reporting to the firm’s governing body in respect of that oversight; and

  3. (3)

    completing and submitting the client money parts of a CMC001 return in accordance with SUP 16.25.3R to SUP 16.25.8R.

CASS 13.2.4R
  1. (1)

    1A firm must make and retain an appropriate record of the person to whom responsibility is allocated in accordance with CASS 13.2.3R.

  2. (2)

    But a firm must make and retain such a record only where:

    1. (a)

      there is a person in that firm who performs the compliance oversight function; and

    2. (b)

      it allocates responsibility in accordance with CASS 13.2.3R to a person other than the person in that firm who performs the compliance oversight function.

  3. (3)

    A firm must ensure that a record made under this rule is retained for a period of five years after it is made.