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  3. Point in time
    2019-08-01

CASS 9.4 1Information to clients concerning custody assets and client money

CASS 9.4.1GRP
  1. (1)

    Firms to which COBS 6.1 applies are reminded that, under COBS 6.1.7R, a firm that holds client designated investments or client money must provide its clients with specific information about how the firm holds those client designated investments and client money and how certain arrangements might give rise to specific consequences or risks for those client designated investments and client money.2

  2. (2)

    COBS 6.1 (Information about the firm and compensation information (non-MiFID and non-insurance distribution4 provisions)) applies to a firm in relation to its designated investment business, other than MiFID, equivalent third country or optional exemption business or insurance distribution activities4, for a retail client.2

1
CASS 9.4.2RRP

1A firm to which COBS 6.1 applies2 that holds custody assets or client money must, in relation to its business for which COBS 6.1 applies2:

  1. (1)

    provide the information in COBS 6.1.7 R for any custody assets the firm may hold for a client, including any custody assets which are not designated investments; and

  2. (2)

    provide the information in COBS 6.1.7 R and in (1) to each of its clients.

CASS 9.4.2ARRP
  1. (1)

    2Firms to which COBS 6.1ZA applies are reminded of the requirements under article 49 of the MiFID Org Regulation (which are directly applicable to some firms and which are also applied to firms in other circumstances under COBS 6.1ZA.3R3) to provide certain information to a client when the firm is holding the client’s financial instruments or funds (see COBS 6.1ZA.9EU3) and the requirement under COBS 6.1ZA.10AR when a firm doing insurance distribution activities is holding client money and has elected to comply with the client money chapter4.

  2. (2)

    COBS 6.1ZA (Information about the firm and compensation information (MiFID and insurance distribution4 provisions)) applies to a firm in relation to its MiFID, equivalent third country or optional exemption business or its insurance distribution activities4 for a client.

CASS 9.4.2BRRP

2A firm to which COBS 6.1ZA applies that holds custody assets or client money must, in relation to its business for which COBS 6.1ZA applies:

  1. (1)

    provide the information referred to in paragraphs 2 to 7 of article 49 of the MiFID Org Regulation for any custody asset that the firm may hold for a client, including:

    1. (a)

      any custody asset which is a designated investment but not a financial instrument; and

    2. (b)

      any custody asset which is neither a designated investment nor a financial instrument; and

  2. (2)

    provide the information in (1) to each of its clients.

CASS 9.4.3GRP

1A firm should provide the information required in CASS 9.4.2 R or CASS 9.4.2BR (as applicable)2 to any client for whom it holds custody assets or client money, including a retail client, a professional client and an eligible counterparty.

CASS 9.4.4GRP
  1. (1)

    1Firms are reminded of their obligation, under COBS 4.2.1 R, to be fair, clear and not misleading in their communications with clients.

  2. (2)

    Firms are also reminded of the requirements in respect of communications made to retail clients under COBS 4.5 and clients under article 44 of the MiFID Org Regulation and COBS 4.5A (as applicable)2.