With a wide range of rules concerning acknowledgement of trust letters, due diligence, unclaimed assets and transfers of business affecting most firms regardless of industry sector or size, ensuring compliance with CASS regulations can prove tricky. Other rules regarding things such as use of buffers, delivery versus payment exclusion, and custody reconciliations will apply to some firms but not others, often based on firm size (small, medium, or large) —depending on how much client money your organization currently holds.

Coupled with a stringent enforcement regime, including fines levied against firms that have failed to adhere to CASS rules, this ensures CASS compliance remains a top priority for UK companies handling client assets. The total amount of fines in 2017 was £229,515,303, a figure that includes substantial fines to individuals as well as to organizations.

So what are the most important things to note?

  • CASS Audits — how can you ensure a smooth CASS audit? Being able to explain how CASS risk and control works in your firm is key. Ensure that you can provide information on CF10a, Compliance and Internal Auditing.
  • CASS Culture — you can start fostering a CASS compliant culture at your organization through trainings courses and by ensuring that CASS knowledge is shared and constantly available.
  • Changes to CASS regulations — CASS 7A changes, Unbreakable Term Deposits (UTDs) and MiFID II client safeguarding articles mean updated regulations for firms. Getting up to date on the changes and ensuring you know how they fit into your compliance framework, processes and CASS rule references is crucial.

Creating a CASS Framework

As protecting client assets is a core element of risk and compliance management for UK organizations, keeping up with the tracking and reporting required to achieve CASS compliance costs organizations considerable time and resources.

Fortunately, Signavio Business Transformation Suite creates a strong and transparent CASS control framework, allowing you to better protect your client’s assets and overcome the biggest CASS compliance challenges.

If you’d like to know more about how Signavio can help manage risk and compliance issues, download our 7 Step Guide to Risk and Compliance. If you’re confident you have a handle on things and are keen to get started with optimizing your business processes, try a free 30-day trial with Signavio today.

Published on: March 19th 2018 - Last modified: April 27th, 2018