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CASS 5.8 Safe keeping of client's documents and other assets

Application

CASS 5.8.1R
  1. (1)

    CASS 5.8 applies to a firm (including in its capacity as trustee under CASS 5.4) which in the course of insurance mediation activity takes into its possession for safekeeping any client title documents (other than documents of no value) or other tangible assets belonging to clients.

  2. (2)

    CASS 5.8 does not apply to a firm when:

    1. (a)

      carrying on an insurance mediation activity which is in respect of a reinsurance contract; or

    2. (b)

      acting in accordance with CASS 61 (Custody rules).

Purpose

CASS 5.8.2G

The rules in this section amplify the obligation in Principle 10 which requires a firm to arrange adequate protection for client's assets. Firms carrying on insurance mediation activities may hold, on a temporary or longer basis, client title documents such as policy documents (other than policy documents of no value) and also items of physical property if, for example, a firm arranges for a valuation. The rules are intended to ensure that firms make adequate arrangements for the safe keeping of such property.

Requirement

CASS 5.8.3R
  1. (1)

    A firm which has in its possession or control documents evidencing a client's title to a contract of insurance or other similar documents (other than documents of no value) or which takes into its possession or control tangible assets belonging to a client, must take reasonable steps to ensure that any such documents or items of property:

    1. (a)

      are kept safe until they are delivered to the client;

    2. (b)

      are not delivered or given to any other person except in accordance with instructions given by the client; and that

    a record is kept as to the identity of any such documents or items of property and the dates on which they were received by the firm and delivered to the client or other person.

  2. (2)

    A firm must retain the record required in (1) for a period of three years after the document or property concerned is delivered to the client or other person.