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CASS 1.4 Application: particular activities

Occupational pension scheme firms (OPS firms)

CASS 1.4.1RRP

In the case of OPS activity undertaken by an OPS firm, CASS applies with the following general modifications:

  1. (1)

    references to customer are to the OPS or welfare trust, whichever fits the case, in respect of which the OPS firm is acting or intends to act, and with or for the benefit of which the relevant activity is to be carried on; and

  2. (2)

    if an OPS firm is required by any rule in CASS to provide information to, or obtain consent from, a customer, that firm must ensure that the information is provided to, or consent obtained from, each of the trustees of the OPS or welfare trust in respect of which that firm is acting, unless the context requires otherwise.

Stock lending activity with or for customers

CASS 1.4.2GRP
1
  1. (1)

    The non-directive custody chapter and the non-directive client money chapter apply in respect of any stock lending activity that isnot MiFID business undertaken with or for a customer by a firm. If the stock lending activity involves MiFID business or if the firm has opted to comply with the MiFID custody chapter or the MiFID client money chapter with respect to its non-MiFID business, then the MiFID custody chapter and the MiFID client money chapter apply.1

  2. (2)

    The collateral rules apply, where relevant, in respect of stock lending activity, whether or not the activity amounts to MiFID business

    1

Corporate finance business

CASS 1.4.3GRP
1
  1. (1)

    The non-directive custody chapter and the non-directive client money chapter apply in respect of corporate finance business that isnot MiFID business undertaken by a firm. If the corporate finance business involves MiFID business or if the firm has opted to comply with the MiFID custody chapter or the MiFID client money chapter with respect to its non-MiFID business, then the MiFID custody chapter and the MiFID client money chapter apply.1

  2. (2)

    The collateral rules apply, where relevant, in respect of corporate finance business, whether or not the activity amounts to MiFID business.1

Oil market activity and energy market activity

CASS 1.4.4GRP
1
  1. (1)

    The non-directive custody chapter and the non-directive client money chapter apply in respect of oil market activity and other energy market activity that isnot MiFID business undertaken by a firm. If the energy market activity (including oil market activity) involves MiFID business or if the firm has opted to comply with the MiFID custody chapter or the MiFID client money chapter with respect to its non-MiFID business, then the MiFID custody chapter and the MiFID client money chapter apply.1

  2. (2)

    The collateral rules apply, where relevant, in respect of energy market activity, whether or not the activity amounts to MiFID business.1

Appointed representatives and tied agents2

CASS 1.4.5GRP
  1. (1)

    Although CASS does not apply directly to a firm's appointed representatives, a firm will always be responsible for the acts and omissions of its appointed representatives in carrying on business for which the firm has accepted responsibility (section 39(3) of the Act). In determining whether a firm has complied with any provision of CASS, anything done or omitted by a firm's1 appointed representative (when acting as such) will be treated as having been done or omitted by the firm (section 39(4) of the Act1). Equally, CASS does not apply directly to tied agents. A MiFID investment firm will be fully and unconditionally responsible for the acts and omission of the tied agents that it appoints. 2

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  2. (2)

    Firms should also refer to SUP 12 (Appointed representatives), which sets out requirements which apply to firms using appointed representatives and tied agents2.

Depositaries

CASS 1.4.6RRP

The non-directive client money chapter and the MiFID client money chapter1 donot apply to a depositary when acting as such.

1
CASS 1.4.7RRP

The remainder of CASS applies to a depositary, when acting as such, with the following general modifications:

  1. (1)

    except in the mandate rules,1 'client' means 'trustee', 'trust' or 'collective investment scheme' as appropriate; and

    1
  2. (2)

    in the mandate rules,1 'client' means 'trustee' 'collective investment scheme' or 'collective investment scheme instrument' as appropriate.

    1
CASS 1.4.8R
2
  1. (1)

    CASS does not apply to a trustee firm which is not a depositary or the trustee of a personal pension scheme or stakeholder pension scheme,2 except for the MiFID custody chapter, the MiFID client money chapter and the mandate rules21.2

    12
  2. (2)

    In 2the MiFID custody chapter, the MiFID client money chapter and the mandate rules, 'client' means 'trustee', 'trust',1 'trust instrument' or 'beneficiary',1 as appropriate.

    211