CASS 1.2 General application: who? what?
CASS 1.2 General application: who? what?
General application: who?
CASS applies to every firm, except as provided for in CASS 1.2.3 R, with respect to the carrying on of:
- (1)
all regulated activities except to the extent that a provision of CASS provides for a narrower application; and
- (2)
unregulated activities to the extent specified in any provision of CASS.
With the exception of this chapter and the insurance client money chapter, CASS does not apply to:
- (1)
an authorised professional firm with respect to its non-mainstream regulated activities; or
- (2)
the Society.
The insurance client money chapter does not apply to an authorised professional firm with respect to its non-mainstream regulated activities, which are insurance distribution activities, if:
- (1)
the firm's designated professional body has made rules which implement article 10.6 of the IDD;
- (2)
those rules have been approved by the FCA under section 332(5) of the Act; and
- (3)
the firm is subject to the rules in the form in which they were approved.
- (1)
In the client money chapter and the insurance client money chapter, an insurance undertaking acts as such when it carries on the business of effecting or carrying out contracts of insurance.
- (2)
An insurance undertaking does not act as such when it enters into a reinsurance contract as a client of the reinsurer.
General application: what?
- (1)
[deleted]
- (2)
[deleted]
- (3)
[deleted]
- (3A)
[deleted]
- (4)
[deleted]
- (5)
[deleted]
- (6)
[deleted]
- (7)
The debt management client money chapter applies to CASS debt management firms receiving or holding client money for, or on behalf of, a client in the course of or in connection with debt management activity.
Application for retail clients, professional clients and eligible counterparties
- (1)
CASS applies directly in respect of activities conducted with or for all categories of clients.
- (2)
[deleted]
- (3)
The insurance client money chapter does not generally distinguish between different categories of client. However, the term consumer is used for those to whom additional obligations are owed, rather than the term retail client. This is to be consistent with the client categories used in the Insurance: New Conduct of Business sourcebook.
- (4)
Each provision in the collateral rules, custody chapter, the client money chapter and CASS 9 (Information to clients) makes it clear whether it applies to activities carried on for retail clients, professional clients or both.
- (4A)
There is no further modification of the rules in the chapters referred to in (4) for activities carried on for eligible counterparties. Such clients are treated in the same way as other professional clients for the purposes of these rules.
- (5)
The debt management client money chapter generally applies in respect of relevant dealings with the client category known as customers. In general, the client categories of retail clients, professional clients, as well as eligible counterparties, have no relevance to credit-related regulated activities, including debt management activities.
Application for affiliates
- (1)
The fact that a firm's client is an affiliated company for MiFID business does not affect the operation of CASS to the firm in relation to that client.
- (2)
For business that is not MiFID business, the operation of the custody chapter or the client money chapter may differ if a firm's client is an affiliated company and depending on certain other conditions (see, for example, CASS 6.1.10B R and CASS 7.10.26 R).
Investments and money held under different regimes
- (1)
A firm must not keep money in respect of which any one of the following chapters applies in the same client bank account or client transaction account as money in respect of which another of the following chapters applies:
- (a)
the client money chapter;
- (b)
- (c)
- (a)
- (2)
In accordance with CASS 7.10.36 R, a firm which is subject to the client money chapter and holds money both (i) in its capacity as a trustee firm and (ii) other than in its capacity as a trustee firm must not keep money held in its capacity as a trustee firm in the same client bank account or client transaction account as money held other than in its capacity as a trustee firm.
- (3)
To the extent that the restriction under (1) or (2) applies to a firm, the client bank accounts and client transaction accounts that a firm holds in respect of different chapters or in its different capacities (as the case may be) must be separately designated.
A firm may, where permitted by the relevant rules opt to hold under a single chapter money that would otherwise be held under different chapters (see CASS 7.10.3 R and CASS 7.10.30 R). However, making such an election does not remove the requirement under CASS 1.2.11R (1).