Outcomes Based Approach to the UK Client Money & Asset Regime

The Markets in Financial Instruments Directive (MiFID II) Article 16 states that “An investment firm shall, when holding financial instruments belonging to clients, make adequate arrangements so as to safeguard the ownership rights of clients, especially in the event of the investment firm’s insolvency, and to prevent the use of a client’s financial instruments on own account except with the client’s express consent”.

The Financial Conduct Authority (FCA) interpret the Safeguarding of Client Money and Assets as a priority for the integrity of the market and protection of clients. Firms and individuals have been held accountable for failures since 2010 and firms must demonstrate compliance through the oversight controls ensuring that they are understood and implemented.

Increased consumer detriment can arise when authorised firms default or exit the market. Poor records and ineffective segregation procedures create a slower, costlier and more uncertain outcome for the customer and associated reputational damage to European markets. This risk is increased during a recession or uncertain economic climate.

Training Objectives

This one workshop will provide delegates with an overview of the regulatory requirements and  impact assess what these requirements practically mean for firms UK firms impacted by CASS 6 (Safe Custody); CASS 7 (Client Money) and CASS 10 (CASS Resolution Pack). The workshop will explore the risks that firms will need to consider in order to maintain compliance with the requirements particularly during times of economic and political change.

Attending this workshop will enable you to:

• Summarise the requirements for Safeguarding of client assets including funds belonging to clients specifically UK Handbook CASS 6 (Custody), CASS 7 (Client Money) and CASS 10 (CASS Resolution Pack)
• Identification of the key challenges of implementation and how to address operational risks arising.
• Explaining Regulatory concerns regarding client money and assets in respect of insolvency and their relevance to European market integrity.
• Illustrate lessons learnt from Enforcement and the impact of future regulatory changes including Brexit.
• Discussion of implications of Client Asset Regulation across European and International Markets.

Training Style

This workshop is designed to be participative throughout. The agenda will combine key formal presentations, case studies and syndicate discussion sessions. There will be ample opportunity for delegates to benchmark experiences with industry peers and raise issues of most concern to their organisation, either confidentially or in open session.

Who should attend

This workshop will be of benefit to anyone who is likely to be affected by the changes to be brought in by MiFID II – Safeguarding of Client Assets, including senior management, legal, compliance and those employees at the coalface.