FSA has published a report on client money and assets which sets out FSA’s concerns over how insurance and investment brokers handle client property. It has written to the CEOs of these firms telling them to consider the report and confirm to FSA their firm is in compliance with relevant CASS requirements. It also wants firms to identify to it the individual who is responsible for CASS compliance. The report shows the results of FSA’s thematic review so far, and it will continue visits in 2010. Among the serious concerns stemming from the visits were:
- inadequate senior management oversight and control;
- overly complex processes;
- failure to check or properly file “trust acknowledgement” letters from banks;
- poor due diligence; and
- delay in reconciliations.
(Source: FSA/PN/012/2010, letter – Client Money and Asset Report and Client Money and Asset Report)