The CASS audit report sets out whether a firm has complied with CASS rules and explains the extent of any breaches. It is one of the key regulatory tools available to the FSA to monitor firms' compliance with the CASS rules. The FSA has been concerned for some time by the quality of these reports and has already referred nine audit firms to their professional bodies for disciplinary action. It has also consulted on enhancements to the rules on CASS audits in Consultation Paper 10/20. The FSA is expected to respond with a policy statement during the first quarter of 2011.
This article was first published on www.complinet.com on 31 January 2011.