Financial Conduct Authority-regulated firms

The Financial Conduct Authority (FCA) is committed to ensuring that the firms it regulates adequately protect client money and takes Client Assets Sourcebook (CASS) rule breaches very seriously.

The client asset report is a key source of information for the FCA in ensuring the CASS regime operates effectively and is a requirement for:

  • all regulated investment firms (with limited exceptions set out in section SUP 3.1 of the FCA Handbook)
  • general insurance intermediaries, although they are not obliged to submit the report to the FCA.

Regulated firms are responsible for appointing an appropriately qualified auditor and ensuring that their client assets reasonable assurance report is provided to the FCA – yet many firms required to produce the report have failed to do so.

At Moore Thompson, our specialist team can advise if the CASS regulations apply to your firm and, if required, carry out the audit and prepare the client asset report.

We go further than simply preparing the report and leaving you to deal with the consequences.  We will also review your existing systems and controls and, following discussions with you, make appropriate and commercially viable recommendations, taking into account how and where you conduct your business.

The FCA’s continuing focus on solvency and capital adequacy make it more important than ever that FCA-regulated businesses adopt an effective approach to managing financial, operational and regulatory risk. Crucial to this is having in place a compliance framework that identifies and addresses issues before problems arise.

Mistakes or non-compliance can be costly, with breaches leading to substantial financial penalties or other serious disciplinary actions, as well as reputational damage.

Moore Thompson recognises that each business regulated by the FCA is unique and offers a compliance service bespoke to each client. Our services are designed to assist in mitigating the risk of issues accruing and of non-compliance and include:

  • CASS audit report
  • compliance health checks, gap analysis and effectiveness reviews
  • design and implementation of risk-based compliance monitoring frameworks
  • independent reviews of compliance matters
  • documentation of client money and asset flows
  • assistance with current reconciliation processes.

To find out how we can help you, please click here.