On 10 June 2014, the FCA published its Policy Statement, including feedback and final rules, following the review of the client assets regime for investment business. Investment firms and other financial institutions that conduct investment business and hold client money, custody assets, collateral or mandates in relation to investment business, including loan-based crowdfunding firms, will need to review the new rules and change their systems and procedures to ensure compliance with the revised rules. The rules, which will become fully enforceable on 1 June 2015, are being phased in. Firms that are a clearing member of a CCP will be permitted, subject to certain requirements being met, to offer multiple  client money sub-pools for net margined omnibus client accounts at CCPs. The FCA is not extending the rules to other areas because of the complexities of operating sub-pool accounts and it appears that only other business models in  terms of client money held by CCPs will be considered in the future. The rules  also include a requirement that firms have an acknowledgement letter in place before they place client money in an account. For money placed with CCPs, there will be no two-way acknowledgement required, only a notification to the CCP by the firm. The revised rules do not include revisions to the rules on calculating entitlements (client money distribution rules) because the FCA intends to wait for HM Treasury to review and implement the recommendations of the review of the special administration regime. The FCA intends to consult on changes to the client money distribution rules later this year.

The FCA Policy Statement is available at: