On 20 October 2010, the FSA published a policy statement on enhancing its client assets sourcebook (CASS) (PS10/16) which includes confirmation of the following changes to the client assets regime:

  • Increased rehypothecation disclosure and transparency requirements for prime brokers  
  • Restricted placement of client money deposits within a group  
  • Prohibition of the use of general liens in custodian agreements  
  • Creation of a new CASS operational oversight function  
  • Introduction of a client money and assets return  

PS10/16 also contains details of the review the FSA conducted on the effectiveness of special purpose vehicles (SPVs) established to enable client assets to be released promptly on a firm’s insolvency.  

The new rules will come into force throughout the course of 2011.