Client Assets CASS 11 Manual | Debt Management Firms and Classification | Operational Oversight Function and Senior Managers and Certification Regime SMCR | Governance and Resolution Pack CASS RP | Template for FCA Applications and Authorised Firms

1 CASS Debt Management Firms

[The requirements imposed on a CASS debt management firm that holds client money vary depending on whether a firm is classified as a CASS small or large debt management firm, so please ensure that your read, edit and customise this section as applicable. You should also ensure that you use and retain any relevant regulations and/or information from the other CASS Manual in this pack as they apply to you.]

The CASS Sourcebook is part of the FCA Handbook and applies to all firms who hold or control client money and safe custody assets (client assets). The guidance, rules and requirements set out in CASS have been created to ensure that adequate protections and controls are in place to safeguard client assets should a firm fail or exit the market.

Client Assets is an area of high importance to the FCA, who have made significant changes to this area since taking over the regulatory role. The importance of Client Assets is clear in that one of the FCA’s defining Principles for firms refers to it specifically.

Principle 10 Clients’ Assets – “A firm must arrange adequate protection for clients’ assets when it is responsible for them”.

CASS 11 covers the requirements and rules for a CASS debt management firm, defined as a firm which: –

a. Carries on the activities of debt counselling or debt adjusting, alone or together, with a view to an individual entering into a particular debt solution
b. Carries on the activity of debt counselling where an associate carry on debt adjusting with the aim in (a) in view
c. Carries on debt adjusting where an associate carry on debt counselling with the aim in (a) in view
d. Is a not-for-profit debt advice body

[Your Company Name] (hereinafter referred to as “The Company”) to confirms that it has adequate and proportionate systems, procedures and controls in place to ensure the continued safety and security of any client money held or controlled by the firm and that we comply with all requirements set out in the CASS section of the FCA Handbook.

2 CASS Firm Classification

The Company determines annually our firm classification using the guidance and figures set out in CASS 11.2.3. For the purpose of determining our CASS debt management firm type, we: –

1. Calculate the highest total amount of client money held during the previous calendar year ending on 31 December and use that figure to determine our CASS debt management firm type
2. Or where we did not hold client money in the previous calendar year but project that we will do so in the current calendar year, we calculate the highest total amount of client money that we project we will hold during that year and use that figure to determine our CASS debt management firm type

For the purpose of calculating the value of the total amounts of client money that we hold on any given day during a calendar year, we always base our calculations on accurate internal records of client money holdings, current copies of which are documented in our Resolution Pack. These records are compiled, and the calculations made using the internal reconciliations performed during the previous year.

Ensuring that a firm knows which type they are in at any given time is a regulatory requirement and every firm is expected to provide their firm type using the limits laid out in CASS 11.2.3 (also in the table above) on an annual basis to the FCA.

2.1 Current Classification

2.1 Annual Notification

The Company use automated reminders and a manual calendar provision to ensure that any reports and returns are completed within the regulated timeframes. These are completed by the person holding responsibility for the CASS oversight.

Once every calendar year, we use the information and calculations from the CASS firm type assessment and report this to the FCA in writing. This report consists of: –

1. Where we held client money in the previous calendar year, the highest total amount of client money held during the previous calendar year, notification of which is made no later than the fifteenth business day of January
2. Where we did not hold client money in the previous calendar year but at any point up to the fifteenth business day of January we project that we will do so in the current calendar year, the highest total amount of client money that we project we will hold during the current calendar year, notification of which is made no later than the fifteenth business day of January
3. In either case, the highest total amount of client money that we project we will hold during the remainder of the current calendar year, notification of which is made no later than the business day before we begin to hold client money
4. In every case, our CASS debt management firm type classification, notification of which is made at the same time that we make the notifications above

3 CASS Operational Oversight Function

[SMCR NOTE: Limited Permission Not for Profit Debt Advice Bodies that are CASS Large Debt Management Firms won’t have any Senior Managers and so do not allocate the CASS PR. The person responsible for CASS within the organisation must still be allocated the CF10a CASS Oversight Function under the Certification Regime.]

The CASS requirements tie in with the SM&CR, and as such a Senior Manager must be made responsible and accountable for all elements of CASS compliance under the CASS prescribed responsibilities.

This Senior Manager may also perform the CF10a CASS Oversight Function, in which case the Certification Function does not need to be applied to them. However, as the CF10a is usually operationally focused, it is not always assigned to a Senior Manager, in which case the person performing the CASS Oversight Function must be certified by the firm. (Please refer to our SM&CR Policy Pack for further information).

As part of our Resolution Pack, we have made and retain an appropriate record of the person/s to whom responsibility is allocated in accordance with, as applicable, CASS 11.3.1 R, CASS 11.3.2 R, and CASS 11.3.4 R. This is recorded only where we have allocated responsibility to a person other than the person within our firm who performs the compliance oversight function. Such records are retained for a period of five years after it is made.

[*Retain only the relevant 3.3 or 3.4 sections as applicable to your business type]

3.3 CASS Small Debt Management Firm

3.3.1 Other Than a Not-For-Profit Debt Advice Body

As a CASS small debt management firm (other than a not-for-profit debt advice body), the Company has allocated a [*Director/Senior Manager] the responsibility for: –

• Oversight of our operational compliance with CASS 11
• Reporting to the FCA in respect of that oversight
• Completing and submitting a CCR005 return in accordance with SUP 16.12.29CR

Where we are a CASS small debt management firm who is also an SMCR firm, we recognise that CASS 11.3.3G (5) to (11) also apply to us and confirm that we have allocated the CASS Prescribed Responsibility (PR)(z) for the Company’s compliance with CASS to one of our SMF managers.

3.3.2 A Not-For-Profit Debt Advice Body

As a CASS small debt management firm who is a not-for-profit debt advice body, the Company has allocated a [*Director/Senior Manager] the responsibility for: –

• Oversight of our operational compliance with CASS 11
• Reporting to the FCA in respect of that oversight
• Completing and submitting a CCR005 return in accordance with SUP 16.12.29CR

3.4 CASS Large Debt Management Firm

As a CASS large debt management firm, the Company has allocated a [*Director/Senior Manager] the responsibility for: –

• Oversight of our operational effectiveness of our systems and controls that have been designed to achieve compliance with CASS 11
• Reporting to the FCA in respect of that oversight
• Completing and submitting a CCR005 return in accordance with SUP 16.12.29CR

The CASS 11.3.3 requirements for CASS large debt management firms, including not-for-profit debt advice bodies, cover the regulations and rules for the controlled function known as the CASS Oversight Function (CF10a). In accordance with the CASS 11.3.3 requirements, the Company have ensured that: –

• We have allocated the CASS Prescribed Responsibility (PR)(z) for the Company’s compliance with CASS to one of our SMF managers (this Senior Manager does not have to perform any other function within the SMCR)
• Where we have allocated the function in CASS 11.3.4R to someone who is not an approved person or SMF manager, we have ensured that: –
  • that person will be subject to the employee certification regime
  • that person will be subject to supervision by the SMF manager
  • the function in CASS 11.3.4R will be the CASS oversight FCA specified significant-harm function

In compliance with the requirements set out in CASS 11.3.6, the responsibility of the CF10a CASS Oversight Function within the Company has been allocated to: –

Name: ________________________            Position:          ______________________

Date Allocated: ____________________      Email:              ______________________

4 Senior Managers & Certification Regime (SMCR)

As an SMCR firm, the Company understands how the CASS requirements fit into the FCA senior managers and certification regime for SMCR firms. For medium and large CASS firms, we recognise that the function in CASS 1A.3.1AR is not a separate controlled function and performing that function does not require approval as an approved person.

We understand our obligation to allocate the function in CASS 1A.3.1AR to a single director or senior manager of sufficient skill and authority in accordance with CASS 1A.3.1AR and CASS 1A.3.2AR. The Company have a dedicated SMCR program to ensure compliance with the regime and understand our obligations: –

• to allocate certain responsibilities to our SMF managers as per SYSC 24 allocation of prescribed responsibilities
• to ensure that one or more of our SMF managers has overall responsibility for each of our activities, business areas and management functions as per SYSC 26 overall and local responsibility
• under the certification regime as per SYSC 27

[There are slightly different CASS requirements for SMCR firms with regard to obligations under SYSC 24 (prescribed responsibilities) and SYSC 26 (overall responsibility for activities, business areas and management functions). We have added the 3 relevant requirements into individual paragraphs below, so please ensure that you customise/delete as applicable.]

1 Where the Company has obligations under both SYSC 24 (prescribed responsibilities) and SYSC 26 (overall responsibility for activities, business areas and management functions): –

• We have allocated responsibility for the Company’s compliance with CASS to one of our SMF managers (see our SMCR allocation register) and recognise that it is an FCA-prescribed senior management responsibility
• Whilst the CASS function in SYSC 24.2.1R is different from the function in CASS 1A.3.1AR, we [have/have not] allocated both functions to the same SMF manager to whom the CASS oversight has been allocated
• [Delete if not applicable] We have allocated the CASS FCA-prescribed senior management responsibility to an SMF manager who does not perform any other function coming within the FCA regime for SMF managers in SMCR firms. As such, the allocated SMF Manager is performing an [Other overall responsibility function (SMF18)/Other local responsibility function (SMF22)] as per SUP 10C.7/SUP 10C.8.1R
• Where the Company has chosen to allocate the function in CASS 1A.3.1AR to a person who is not an approved person and SMF manager, we understand that the allocated person will be subject to the employee certification regime as described in SYSC 27 and that they will be subject to supervision by the SMF manager to whom the CASS oversight has been allocated

2 Where the Company has obligations under SYSC 24 (prescribed responsibilities) but not SYSC 26 (overall responsibility for activities, business areas and management functions): –

• We have allocated responsibility for the Company’s compliance with CASS to one of our SMF managers (see our SMCR allocation register) and recognise that it is an FCA-prescribed senior management responsibility
• Whilst the CASS function in SYSC 24.2.1R is different from the function in CASS 1A.3.1AR, we [have/have not] allocated both functions to the same SMF manager to whom the CASS oversight has been allocated
• Where the Company has chosen to allocate the function in CASS 1A.3.1AR to a person who is not an approved person and SMF manager, we understand that the allocated person will be subject to the employee certification regime as described in SYSC 27 and that they will be subject to supervision by the SMF manager to whom the CASS oversight has been allocated

3 Where the Company has no obligations under SYSC 24 (prescribed responsibilities) or SYSC 26 (overall responsibility for activities, business areas and management functions); the Company has chosen to [allocate the function in CASS 1A.3.1AR to an SMF manager/allocate the function in CASS 1A.3.1AR to someone who is not an SMF manager].

Where the CASS oversight allocation has been made to someone who is not an SMF manager, we understand that the person performing the function in CASS 1A.3.1AR falls under the certification regime and that the function in CASS 1A.3.1AR is the CASS oversight FCA certification function in SYSC 27.8.1R.

We utilise robust SMF/CF due diligence and fitness assessments to ensure that we are complying with both our SMCR and CASS obligations. Where the Company has allocated the CASS oversight responsibilities to a director or senior manager, we have assessed and verified that no other responsibilities have been allocated to that person unless we are satisfied that: –

• The person will still be able to discharge the CASS oversight responsibilities effectively; and
• our full compliance with CASS will not be compromised

5 CASS Governance

The Company understands the important of having clear, defined and robust Client Money policy and procedure documents in place which provide our intent, objectives, processes and reporting requirements in a format that is supportive to our staff and associated parties. Our policies, procedures and resolution pack are frequently reviewed and audited to ensure compliance and adequacy.

5.5 CASS 11 Debt Management Policy & Procedures

1 Purpose

The purpose of The Company’s Client Money Policy and Procedure document is to set out our intent and objectives on how we propose to protect and safeguard client money that the Company holds and to provide guidance and rules for when money ceases to be client money for the purposes of both those rules and of the fiduciary duty which we owe to our clients in relation to client money. This document gives provisions for the procedures we have in place as well as being used in conjunction with our CASS Resolution Pack.

This document ensures that where we hold or place client money, we have developed and implemented adequate arrangements to safeguard the client’s rights and prevent the use of client money for our own account. Effective and compliant organisational arrangements are in place to minimise the risk of the loss or diminution of client money, or of rights in connection with client money, as a result of misuse of client money, fraud, poor administration, inadequate record-keeping or negligence. Our controls and measures have been designed to minimise such risks.

2 Policy Statement

The Company takes very seriously its responsibilities towards client money as set out by the FCA and subsequently in the CASS sourcebook. We are committed to safeguarding and protecting any client money held or controlled by our firm and we have extensive and adequate operational and recording procedures in place to minimise any risks, protect all monies and provide confidence and peace of mind to our clients.

We understand the importance of detailed record keeping with respect to client money, so that locating clients and allocating money is quick and easy should the Company fail and exit the market. We also have comprehensive training programs and staff support materials concerning client money and the managing, recording, storing and transferring thereof.

3 Scope

The policy relates to all staff (meaning permanent, fixed term, and temporary staff, any third-party representatives or sub-contractors, agency workers, volunteers, interns and agents engaged with The Company in the UK or overseas) within the organisation and has been created to ensure that staff deal with the area that this policy relates to in accordance with legal, regulatory, contractual and business expectations and requirements.

4 Objectives

The Company have developed the below company objectives regarding our CASS requirements, which aim to meet our legal and regulatory obligations and protect both our customers and clients.

The Company aim to: –

• Carry out regular assessments across all CASS related functions and processes to effectively and adequately mitigate risks
• Ensure effective and efficient due diligence is performed on all associated and counterparties prior to making any agreements or forming a business relationship
• Maintain adequate and transparent communications with all CASS associated third parties
• Safeguard and protect client money
• Appoint an individual the CF10a CASS Oversight Function
• Assign a Senior Manager the CASS Prescribed Responsibility (z)
• Develop and implement policies, procedures and controls for protecting and safeguarding client money
• Have adequate organisational arrangements to minimising the risk of the loss or diminution of client money as a result of misuse of client money against misuse as a result of fraud, poor administration, inadequate record keeping or negligence
• Ensure the segregation of client money and to mark any account used to deposit money as a ‘client bank account’, held and identified separately from any accounts used to hold money belonging to the firm
• Ensure that adequate record keeping procedures are in place to distinguish one clients’ money from that held for any other client and our own firm
• Perform internal reconciliations and records checks
• Information clients about how their monies are held and any risks that may be associated with holding or controlling their money
• Ensure that all communications with clients regarding client money is clear, honest and not misleading
• Ensure that a CASS Resolution Pack and associated procedures are in place and are continuously reviewing for compliance and effectiveness

5 Procedures & Controls

[The procedures in this section follow those set out in the CASS 7 Sourcebook and comply with the general requirements for all firms – however, many CASS controls and procedures are specific to the firm and their processes, so it is essential that you add your own firm’s procedures where applicable and that any CASS requirements not included here, applicable to your firm, are addressed and procedures written in].

5.1 Client Money

The Company has an obligation when holding client money, make adequate arrangements to safeguard the client’s rights and prevent the use of client money for our own account. To this end, it is essential that we understand when money ceases to be client money.

Money ceases to be client money if: –

• It is paid to the client, or a duly authorised representative of the client
• It is: –
  • paid to a third party on the instruction of the client, or with the specific consent of the client
  • paid to a third party further to an obligation on the firm under any applicable law
  • it is paid into an account of the client (not being an account which is also in our name) on the instruction, or with the specific consent, of the client
  • it is due and payable to us for our own account
  • it is paid to us as an excess in the client bank account

If the Company draws a cheque or other payable order to discharge our fiduciary duty to the client, we continue to treat the sum concerned as client money until the cheque or order is presented and paid. Any interest earned on client money is paid over to the client and recorded as such.

5.2 Statutory Trust

The Company receives and holds client money as trustee on the following terms: –

• For the purposes and on the terms of the debt management client money rules and the debt management client money distribution rules
• For the clients for whom that money is held, according to their respective interests in it
• In the event of The Company’s failure, for the payment of the costs properly attributable to the distribution of the client money
• After all valid claims and costs arising from the above clauses have been met, for ourselves

5.3 Approved Bank Use and Selection

Where appointing banks for the use of holding money in a client account, the Company carries out adequate and proportionate due diligence and background checks prior to appointment.

All selection and periodic review records are recorded in our Resolution Pack along with records of the grounds on which each bank was selected. Our checks include: –

• Completing creditworthiness and background checks using company data, incorporation documents, financial statements and credit reference checks
• Completing a due diligence review and questionnaire to assess the procedures and controls in place
• Risk assessments

Our records of the grounds upon which we have satisfied ourselves as to the appropriateness of our selection and appointment of a bank: –

• Are documented in our Resolution Pack and on the Master Document
• Record the date the selection or appointment was made
• Are retained that appointment date, until five years after we cease to use that particular person for the purposes of depositing client money
• Are subject to periodic reviews along with our considerations and conclusions. The review document records the date we complete the review and is retained from that date until five years after the firm ceases to use that particular person for the purposes of depositing client money

The Company has specific client accounts for the holding and placement of client money, details of which are provided under each Appointed Bank in our Resolution Pack.

We only use the designated client account to deposit client money and ensure that these accounts are clearly identifiable from any accounts used to hold money belonging to us.

We comply with the below terms in relation to the client money accounts: –

• The account/s used to deposit client money are designated client bank account/s
• Each client bank account is held on terms under which: –
  • the relevant bank’s contractual counterparty is the Company
  • we can make withdrawals of client money promptly and, in any event, within one business day of a request for withdrawal
• Any monies received by our appointed representatives, tied agents, field representatives or other agents is received directly into a client bank account or paid in promptly where receipt is in cash or cheque

The Company ensure that we have signed, completed and returned acknowledgment letters and executed agreements on file for each bank and the all client bank accounts: –

a. Hold the money of one or more clients
b. Are in the name of the firm
c. Includes in their title, an appropriate description to distinguish the money in the account from the firm’s money
d. The designated client bank account is only used for a client where that client has consented to the use of that account and all other designated client fund accounts which may be pooled with it

5.4. Acknowledgement Letters

The Company maintains copies of all acknowledgement letters, agreements, side letters, modifications to terms and notifications as per our CASS requirements. These documents are readily available and adequate to meet our obligations and are stored in our resolution pack.

We have utilised the sample content provided in the FCA handbook Annex to ensure that the content in the letters and any documentation is compliant and effective. Where using the template acknowledgment letter, we: –

• Do not amend any of the acknowledgement letter fixed text
• Ensure the acknowledgement letter variable text is removed, included or amended as appropriate
• Do not amend any of the acknowledgement letter variable text in a way that would alter or otherwise change the meaning of the acknowledgement letter fixed text

We recognise that the main purposes of acknowledgement letters are to: –

• Put the bank on notice of our clients’ interests in client money that has been deposited with, or has been allowed to be held by, such person
• Ensure that the client bank account or client transaction account has been opened in the correct form and is distinguished from any account containing money that belongs to us
• Ensure that the bank understands and agrees that it will not have any recourse or right against money standing to the credit of the client bank account or client transaction account, in respect of any sum owed to such person, or to any other third person, on any other account

5.4.1 Acknowledgement Letter Procedures

1. For each client bank account, we complete and sign a client bank account acknowledgement letter which clearly identifies the client bank account
2. This is then sent to the bank with whom the client bank account is, or will be, opened
3. We request the bank to acknowledge and agree to the terms of the letter by countersigning it and returning it to the firm
4. A copy of this returned and countersigned acknowledgement letter is then retained in our resolution pack

We do not hold or receive any client money in or into a client bank account unless we have received a duly countersigned client bank account acknowledgement letter from the relevant bank that has not been inappropriately redrafted and clearly identifies the client bank account.

5.5 Segregation of Client Money

Although the oversight of CASS lies with the CF10a, the below procedures are carried out by the Accounts Team based on their job roles.

Due diligence checks are carried out prior to using (and as a review on a rolling basis) any of the below for depositing client money with the selection and appropriateness records being recorded and reviewed as per our CASS 11 requirements. Procedures in relation to the segregation of client money are: –

• Within 24 hours of receiving any client money, it is deposited an approved bank
• Client money is deposited into a clearly identified client account which is kept separate from the usual The Company money account
• Where automatic transfers are received, where possible these will be transferred directly into a client bank account
• Where a mixed remittance is received, all funds are to be paid into the client account immediately and then remaining non-client funds are to be transferred back out of the client account within 24 hours.

[NOTE: Please ensure that where your money placement procedures differ from the above, you insert your actual process.]

5.6 Physical Receipts of Client Money

Where the Company receives client money in the form of cash, a cheque or other payable order, we always: –

• Pay the money in promptly, and no later than on the business day after receipt of the money into a client bank account, unless either:
  • the money is received by a business line for which we use the alternative approach, in which case the money is paid into our own bank account under the same conditions
  • we are unable to meet the requirement in (1) because of restrictions under the regulatory system or law, in which case the money is paid in as soon as is reasonably possible
• Ensure the compliance with Principle 10 where we hold any money in the meantime before paying it in, as referred to in (a) or (b) and ensure that the money is held in a safe location
• Record the receipt of the money in our books and records in line with CASS 11.11 (Records, accounts and reconciliations)

Where we receive client money in the form of a cheque that is post-dated with a future date and that cheque is not returned to the client, we: –

• Pay the money in promptly, and no later than the date on the cheque if the date is a business day or the next business day after the date on the cheque
• In the meantime, hold it in a secure location in accordance with Principle 10
• Record the receipt of the money in our books and records in accordance with CASS 7.15 (Records, accounts and reconciliations)

5.7 Client Money Receipts and Payments

Any client money received by the Company is allocated to an individual client promptly and, in any case, no later than ten business days following receipt. Pending our allocation of any client money to an individual client, we record the received client money in our books and records as ‘unallocated client money’.

Where we have received money (either in a client bank account or an account of its own) which we are unable to immediately identify as client money or our own money, we always: –

• Take all necessary steps to identify the money as either client money or its own money as soon as possible
• Where reasonably prudent to do so and given the risk that client money may not be adequately protected if it is not treated as such, we treat the entire balance of money as client money and record the money in our books and records as ‘unidentified client money’ while we perform the necessary identification steps
• Where we are unable to make an identification of the money as either our own or client, we take reasonable steps to consider returning the money to the person/institution who sent it

Where we are operating the normal approach to client segregation and are liable to pay money to a client should promptly, we always pay the money: –

• To, or to the order of, the client; or
• into a client bank account

5.8 Client Money Received by a Third Party

Where the Company utilises a third-party to receive client money, we understand that we still have a fiduciary duty to the client as well as regulatory obligations.

In compliance with CASS 11, we only allow another entity/person to receive/hold client money if: –

• We have an agreement and acknowledgment letter on file
• The client has consented to using the third party
• Selection due diligence and periodic reviews have been carried out and recorded
• They are detailed in our Resolution Pack for instant access

Where the Company has client money that is received by our appointed representatives, field representatives or other agents, it is:

• Received directly into a client bank account of ours
• If received in the form of a cheque or other payable order: –
  • paid into a client bank account of ours promptly and, in any event, no later than the next business day after receipt
  • forwarded to us or, in the case of a field representative, forwarded to a specified business address of ours, to ensure that the money arrives at the specified business address promptly and, in any event, no later than the close of the third business day following the receipt of the money from the client
• If it is received in the form of cash, paid into a client bank account of ours promptly and, in any event, no later than the next business day after receipt

5.9 Specific Client Money Rules

[Detail your exact procedures for managing, recording and transferring client money and any other specific CASS 7 procedures that your firm already has in place that differ from those already included.]

6 Records, Accounts, Reconciliations and Reporting

The Company complies with the requirements of keeping records and accounts of the client money that we hold and/or deposit. We have in place adequate and clear controls and procedures necessary to enable us, at any time and without delay, to distinguish client money held for one client from client money held for any other client, and from our own money.

Records are kept that enable us to promptly determine the total amount of client money that we are holding at any one time and to provide specific amounts, balances and transactions relating to each client. The records show and explain all transactions and commitments for our client money and are retained for a period of five years starting from the later of the date it was created or the date it was most recently modified.

Our Resolution Pack contains direct access to the below required records and reconciliations: –

• Internal client money reconciliations
• External client money reconciliations

• • For each client money reconciliation, we detail: –
    • the date we carried out the relevant process
    • the actions taken in carrying out the relevant process
    • the outcome of our calculations, including any discrepancies and the resolving actions taken

[Reconciliations are firm specific, so please ensure that you add your procedures and measures for the frequency and method of the reconciliations, the resolution of reconciliation discrepancies and the frequency of the periodic reviews carried out. Provisions for the methods of reconciliations are provided in the FCA Handbook under CASS 11.11 onwards.]

We understand and comply with our obligations to inform the FCA in writing without delay if: –

• Our internal records and accounts of client money are materially out of date or materially inaccurate so that we are no longer able to comply with the requirements in CASS 11.11.1 R to CASS 11.11.4 R
• We become aware that, at any time in the preceding 12 months, the amount of client money segregated in our client bank accounts materially differed from the total aggregate amount of client money we were required to segregate in client bank accounts in accordance with the segregation requirements in CASS 11.9

[Below apply to large firms only]

• After having carried out a CASS large debt management firm: –
  • internal client money reconciliation in accordance with CASS 11.11.13 R we will be unable to, or materially fail to, pay any shortfall into (or withdraw any excess from) a client bank account so that we are unable to comply with CASS 11.11.23 R
  • external client money reconciliation in accordance with CASS 11.11.25 R we will be unable to, or materially fail to, identify and correct any discrepancies in accordance with CASS 11.11.28 R
• We will be unable to or materially fail to: –
  • conduct a CASS large debt management firm internal client money reconciliation in compliance with CASS 11.11.13 R
  • conduct a CASS large debt management firm external client money reconciliation in compliance with CASS 11.11.25 R

The Company sends an [*quarterly/bi-annual/annual] statement and report of transactions, client money held or deposited. This statement is sent on [insert date] in writing. Client reports and statements are also sent out at the request of a client at any time. These are sent in a durable medium and are provided within five business days following the receipt of the request. Where we make a charge for additional statement requests, these only seek to cover our actual costs. All statements are clear, jargon-free and in an easy to understand format.

7 Payments to Creditors

Where the Company receives client money from a client in relation to a debt management plan or for the purpose of distribution to the client’s creditors, we pay that money to creditors as soon as reasonably practicable or at least within 5 business days of receipt of cleared funds. Our payment to creditor procedures are as follows: –

[Each firms’ procedures are bespoke, please insert yours here.]

• The only circumstances where we do not pay over the money to creditor within 5 business days are in accordance with those referred to in CASS 11.10.1 R, being: –
• The contract between the client and The Company expressly provides that client money might be held for more than five business days without being distributed to creditors
• The existence of such a term expressly providing that client money might be held for more than five business days without being distributed to creditors has been separately brought to the attention of the client prior to his entering into the contract
• The Company have explained to the client the risks and implications, if any, of payment to creditors being delayed prior to the entry into the contract

On each occasion that the Company receives client money from a client in relation to a debt management plan, or for the purpose of distribution to the client’s creditors, and it is proposed not to make a client’s payment to creditors within five business days of receipt of the client money in the circumstances described in CASS 11.10.3 R (1), we always: –

• As soon as reasonably practicable and within the five-business day period, inform the client’s creditors of the fact that we have received client money from the client for the purpose of distribution to his or her creditors and that we will not distribute that client money to the creditors within the five business-day period
• Perform daily reconciliations of the money held for the client concerned in accordance with the provisions of CASS 11.11
• Inform the client: –

• • of the delay and the reason for the delay
  • of the risks and implications of the late payments
  • of this delay as soon as reasonably practicable and within the period of five business days of the receipt of the relevant client money
  • perform daily checks of our records of the money held for the client concerned in accordance with the provisions of CASS 11.11
• Put the client into the financial position they would have been in had the delay not occurred

8 CASS Resolution Pack

The CASS Resolution Pack is a collection of records and documentation that are required to comply with the FCA’s client money regulations and rules under CASS 11. Where a firm holds client money, it is obligated to have a resolution pack in place along with a master document that provides easy and quick access to the necessary documents and information.

The Company utilise this CASS manual and Resolution Pack to document the controls and measures taken to comply with the legal and regulatory requirements for holding client money with a view to providing prompt retrieval should our firm fail.

To ensure the protection of client money and assets, the Company confirms that it complies with all CASS 11 requirements and that it has and keeps up to date a CASS 11 Resolution Pack for all client custody assets and client money held.

The Company confirms that in relation to each document in the CASS debt management firm’s CASS 11 resolution pack, we ensure that: –

• We have put in place adequate arrangements to ensure that an administrator, receiver, trustee, liquidator or analogous officer appointed in respect of it or any material part of its property is able to retrieve each document as soon as practicable and, in any event, within 48 hours of that officer’s appointment
• The retrieval of each document can happen as soon as practicable and, in any event, within 48 hours where it has taken a decision to do so or as a result of an FCA request
• We review the content of our CASS 11 resolution pack on an ongoing basis to ensure that it remains accurate
• In relation to any change of circumstances that has the effect of rendering inaccurate, in any material respect, the content of a document specified in CASS 11.12.4 R, we will ensure that any inaccuracy is corrected promptly and, in any event, no more than five business days after the change of circumstances arose.

The Company confirms that the CASS 11 RP is reviewed and updated on a frequent, ongoing basis to ensure accuracy, adequacy and compliance with all regulatory requirements. We also confirm that our appointed CASS Operational Oversight Function holder will report to the FCA on an annual basis to re-confirm our continued compliance with these regulatory requirements.

8.1 CASS Resolution Pack Review

The Company CASS Resolution Pack (RP) is located at and contains all documents as specified in 11.12 of the FCA Handbook. To ensure compliance with the regulatory requirements, our CF10a reviews and audits this pack on the [insert day] of each month, as below: –

• Navigate to current location of the CASS Resolution Pack
• Review the master document and ensure that all contents are still adequate, relevant and accurate – make any amendments necessary
• Review list of banks and third parties who may or are holding client money or client assets and ensure it is accurate and up to date – make any amendments necessary
• Ensure that any new agreements made since the last monthly review are added to the pack
• Ensure that any new banks or third parties used since first monthly review are added to the applicable list (including full name, address, contact name, contact number & email address and number of accounts with the firm)

9 Record Keeping & Reporting

• Record each deposit of client money in the firm’s client account as a single unit, referencing the client it applies to so that it can be differentiated against other deposits
• Make copies of all executed client agreements and file accordingly
• Carry out frequent internal reconciliation of the client money as held for each client
• Carry out frequent reconciliation of any third party with our own internal accounts and records

10 Responsibilities

The Company will ensure that all staff are provided with the time, training and support to learn, understand and implement the Debt Management Client Money Policy and Procedures and any related regulatory requirements. All staff are responsible for understanding the obligations under the regulatory system and for ensuring that they know, understand and comply with the Company’s objectives and approach to protecting and handling Client Assets.

The allocated individual who has been assigned the CF10a CASS Oversight Function has the overall responsibility to ensure that adequate measures, controls and procedures are developed, implemented and disseminated regarding the protection, handling and safeguarding of all client assets and that all requirements set out in the CASS Sourcebook are complied with.

6 Resolution Pack (CASS RP)

[PLEASE NOTE: We have also provided ready-to-use, unpopulated Resolution Packs in an Excel format. However, it is essential that you review and understand the CASS requirements as they apply to your firms and customise each template/pack to ensure compliance.]

The CASS Resolution Pack is a collection of records and documentation that are required to comply with the FCA’s client assets regulations and rules. Where a firm holds client money and/or safe custody assets, it is obligated to have a resolution pack in place along with a master document that provides easy and quick access to the necessary documents and information.

A CASS Resolution Pack is designed to be a readily available tool that assists the firm, its staff, but has the primary function of being available at the request of the FCA, an Insolvency Practitioner, an administrator, receiver, trustee, liquidator or analogous officer appointed in respect of it, for the purpose of locating and returning client money and safe custody assets should the business fail, and the need arise. CASS regulated firms have a responsibility to their customers at all times to ensure that client money and assets are safe, protected and easily obtainable.

The Company utilise this CASS manual and Resolution Pack to document the controls and measures taken to comply with the legal and regulatory requirements for holding client money and assets with a view to providing prompt retrieval should our firm fail.

CASS 11 applies to Debt Management Client Money and requires the development, implementation and use of a CASS 11 Resolution Pack for those who are a CASS debt management firm that receive or hold client money.

6.1 CASS Retrieval Timeframes

The Company acknowledge that the retrieval of all documents required in the CASS Resolution Pack have a maximum timeframe of 48-hours, with some documents being subject to an immediate retrieval rule. Where such documents are retained by a third-party, we have adequate and tested procedures in place to retrieve these documents within the stated timeframes.

Where we hold in electronic form any document in our CASS Resolution Pack, we confirm that we continue to be able to comply with CASS requirements in respect of that document.

7 Resolution Pack Word Templates

[PLEASE NOTE: We have included a ready-to-use Resolution Pack in an Excel format with your manual. Completing that Excel document enables you to comply with many of the CASS 11.12 requirements, along with inserting the additional documentation into your pack (e.g. letters, agreements, reconciliations etc).

However, some firms may prefer to use Word templates for their RP, so we have added some templates below that can be used. You do not need complete both versions. One Word template should be completed for each bank, agent etc as oppose to using one sheet for all listings].

7.1 CASS 11 Resolution Pack Master Document

This table provides a list of the required CASS 11 Resolution Pack (RP) contents and acts as the Master Document for noting the location of each document, its retrieval deadline and when the document was last updated or reviewed.

8 CASS 11 Templates

1.1 Appointed Banks

8.2 Appointed Agents

[Inc appointed representatives, tied agents, field representatives or other agents acting its capacity as the firm’s agent]

8.3 CASS Employees & Oversight

8.4 Clients