Client Assets: Financial Services

A tracker providing details of final notices issued by the FCA and FSA concerning breaches of rules relating to the holding of client assets and client money, which are set out in the Client Assets sourcebook (CASS).

An overview of HM Treasury's review of resolution arrangements for investment banks and firms. The review, which was carried out under powers granted in the Banking Act 2009, resulted in the introduction, in February 2011, of a special administration regime (SAR) for investment banks and firms.

This practice note is one of two notes summarising the European Commission's consultation proposals to amend the requirements of the Markets in Financial Instruments Directive (2004/39/EC) and its implementing legislation, which were published in December 2010 following the Commission's review of the effectiveness of the Directive. This note focuses specifically on the proposals relating to the scope of MiFID (including exemptions), conduct of business issues, the provision of investment services (including authorisation and organisational requirements), the sanctions regime, member state options and discretions, and third country firm equivalence. This note does not comment on the Commission's legislative proposals to amend MiFID, which were published in October 2011. For details of the legislative proposals, see Practice note, Hot topics: MiFID II.

An outline of the FCA's client assets requirements relating to prime brokerage as set out in chapter 9 of the Client Assets sourcebook (CASS 9).

This note is part of a guide to the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFM Directive), written by Travers Smith LLP. The note sets out what a depositary does, who can be a depositary and what rules apply to depositaries under the AIFM Directive. For an index to the AIFM Directive guide, see Practice note, A guide to the AIFM Directive: index.

This resources document provides links to key PLC legal updates, case reports and articles available to PLC Financial Services subscribers in relation to client asset issues arising from the administration of Lehman Brothers International (Europe) (LBIE), including links to the relevant key primary sources. It is not intended to be an exhaustive list of all PLC materials relevant to Lehman Brothers client asset issues. For more information on the work of the FSA, HM Treasury and other bodies on strengthening the UK client assets regime in response to the issues highlighted by the financial crisis and the collapse of Lehman Brothers, see Practice note, FSA reform of client assets regime (2008-11): thematic work and rules changes.

An outline of the changes made to FSA's Client Assets sourcebook (CASS), which took effect (subject to one exception) from 1 January 2009. FSA consulted on these changes in consultation paper 08/6, Review of the client assets sourcebook (CP08/6). The final rules and feedback to the consultation are set out in policy statement 08/10, Client assets sourcebook (Common platform provisions) instrument 2008 (PS08/10). FSA adopted a principles-based approach to its review, with the removal of unnecessary guidance and, as far as possible, introducing a single regime for client assets based on (but not limited entirely to) MiFID requirements. In doing so, FSA sought to reduce any significant undue burdens on firms. The recent financial crisis and the collapse of Lehman Brothers have revealed a number of serious failings in relation to firms' handling of client money and assets, and weaknesses in the FSA's current client assets regime. As a result, client assets is now one of the FSA's key supervisory priorities, and a number of initiatives are being undertaken by HM Treasury and the FSA to address these issues. For information on these developments, see Practice note, FSA reform of client assets regime (2008-11): thematic work and rules changes.