CASS 1.4 Application: particular activities

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.

The client money chapter 1 does 3not apply to a depositary when acting as such.

Subject to CASS 1.4.6 R, 5 CASS applies to a depositary, when acting as such, with the following general modification: 'client' means 'trustee', 'trust', 'AIF', 'AIFM acting on behalf of the AIF', or 'collective investment scheme', as appropriate.5

1. (1)

   7The application of CASS for a trustee firm acting as a depositary is set out in CASS 1.4.6 R and CASS 1.4.7 R.

2. (2)

   The application of CASS for a trustee firm that is not acting as a depositary is limited as follows:

   1. (a)

      the mandate rules apply;

   2. (b)

      for MiFID business, the custody chapter and the client money chapter apply; and

   3. (c)

      for business that is not MiFID business, the custody chapter and the client money chapter apply only to trustee firms acting as trustees of personal pension schemes or stakeholder pension schemes, including SIPPs.

3. (3)

   To the extent that CASS applies to a trustee firm, it applies with the following general modification: 'client' means 'relevant trustee', 'trust', or 'beneficiary', as appropriate.

4Where a firm carries on auction regulation bidding it may elect to comply with CASS (but not CASS 5) in respect of this activity, subject to the general modifications in CASS 1.4.10 R.

4Where a firm has made an election in accordance with CASS 1.4.9 R, CASS is modified so that in relation to that firm:

1. (1)

   each reference to:

   1. (a)

      designated investments;

   2. (b)

      safe custody assets; and

   3. (c)

      contingent liability investments;

   includes a reference to a two-day emissions spot;

2. (2)

   each reference to designated investment business includes auction regulation bidding;

3. (3)

   each reference to safeguarding and administering investments, including safeguarding and administration of assets (without arranging) and arranging safeguarding and administration of assets, includes those activities where they are carried on in relation to a two-day emissions spot; and

4. (4)

   the reference in CASS 6.2.3A R to an 'emissions auction product that is a financial instrument' includes a two-day emissions spot;

4Where a firm makes an election in accordance with CASS 1.4.9 R it must:

1. (1)

   make a written record of the election, including the date from which the election is to be effective, on the date it makes the election;

2. (2)

   keep that record from the date that it is made for a period of five years after ceasing to use the opt in.

4Where a firm that has opted in to CASS under CASS 1.4.9 R subsequently decides to cease its use of that opt in it must:

1. (1)

   make a written record of this decision, including the date from which the decision is to be effective, on the date it takes the decision;

2. (2)

   keep that record from the date that it is made for a period of five years after the date it is to be effective; and

3. (3)

   discharge any outstanding fiduciary obligations that had arisen because the firm had elected to comply with CASS.