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CASS 9.5 Reporting to clients on request1

CASS 9.5.1GRP
  1. (1)

    Firms to which COBS 16.4 applies are reminded that, under COBS 16.4, they are required to send to each of their clients at least once a year a statement in a durable medium of those designated investments and/or client money they hold for that client. A firm which manages investments may provide this statement in its periodic statement, as required under COBS 16.3.2

  2. (2)

    COBS 16.4 (Statements of client designated investments or client money) applies, in accordance with COBS 16.1.2R, to a firm carrying on designated investment business other than MiFID, equivalent third country or optional exemption business.2

CASS 9.5.2GRP

Firms are reminded that the requirements in COBS 16.4, article 63 of the MiFID Org Regulation and COBS 16A.42 only set out the minimum frequency at which firms must report to their clients on their holdings of designated investments and/or client money. Firms may choose to report to their clients more frequently.

CASS 9.5.3GRP

Subject to CASS 9.5.5AR and2 CASS 9.5.6 R, CASS 9.5.4R, CASS 9.5.4BR2 and CASS 9.5.5 R require firms to comply with a client's request for information on the custody assets and/or client money the firm holds for a client under CASS 6 and/or CASS 7, and such request may be made by a client at any time.

CASS 9.5.4RRP

When a firm to which COBS 16.4 applies2 receives a request, made by a client, or on a client's behalf, for a statement of the custody assets and/or client money that the firm holds for that client, the firm must provide the client with the statement requested in a durable medium.

CASS 9.5.4ARRP
  1. (1)

    Firms to which COBS 16A applies are reminded of the requirements under article 63 of the MiFID Org Regulation (which are directly applicable to some firms and which are also applied to firms in other circumstances under COBS 16A.1.2R) in relation to quarterly statements when the firm is holding a client’s financial instruments or funds (see COBS 16A.4.1EU and COBS 16A.5.1EU).2

  2. (2)

    COBS 16A (Reporting information to clients (MiFID provisions) applies to a firm in relation to its MiFID, equivalent third country or optional exemption business.2

CASS 9.5.4BRRP

2When a firm to which COBS 16A applies receives a request, made by a client, or on a client’s behalf, for a statement of the custody assets that the firm holds for that client, it must provide the client with a statement in a durable medium in relation to any custody assets that are not financial instruments.

CASS 9.5.4CGRP

2A firm to which COBS 16A applies may combine the statement required under CASS 9.5.4BR with a statement issued in response to a request made under the last sentence of the first sub-paragraph of article 63(1) of the MiFID Org Regulation.

CASS 9.5.5RRP

When a firm receives a request, made by a client, or on a client's behalf, for a copy of any statement of custody assets and/or client money previously provided to that client, the firm must provide the client with the copy of the statement requested in a durable medium and within five business days following the receipt of the request.

CASS 9.5.5ARRP

2A firm is not required to provide a client with a statement under CASS 9.5.4R or CASS 9.5.4BR, or a copy of a statement under CASS 9.5.5R (as applicable) where the following conditions are met:

  1. (1)

    the firm provides the client with access to an online system, which qualifies as a durable medium;

  2. (2)

    up-to-date statements of the client’s custody assets and/or client money can be easily accessed by the client via the system under (1); and

  3. (3)

    the firm has evidence that the client has accessed this statement at least once during the relevant quarter.

CASS 9.5.6RRP

Any charge agreed between the firm and the client for providing the statements in CASS 9.5.4R, CASS 9.5.4BR or2 CASS 9.5.5R (as applicable) must be at a commercial cost2.

CASS 9.5.7GRP

Any statement provided to a client under CASS 9.5.4 R or CASS 9.5.5 R (as applicable)2 may, although it is not required to, be in the same form as the statement a firm is required to provide to a client under COBS 16.4 or, if appropriate, COBS 16.3.

CASS 9.5.8GRP

Consistent with the fair, clear and not misleading rule, a firm should ensure that, in any statements of custody assets and/or client money it provides to its clients, it is clear from the statement which assets and/or monies the firm reports as holding for the client are, or are not, protected under CASS 6 and/or CASS 7 (e.g. if the statement also includes information regarding assets and/or monies which are held by the firm for that client which are not subject to the custody rules and/or client money rules) .

CASS 9.5.9GRP

Firms are reminded that under CASS 3.2.4 G firms that enter into arrangements with retail clients2 covered by CASS 3 (Collateral) should, when appropriate, identify in any statement of custody assets sent to the client under COBS 16.4 (Statements of client designated investments or client money), article 63 of the MiFID Org Regulation or COBS 16A.4 (as applicable)2 or this section the details of the assets which form the basis of that collateral arrangement.