Policy Statement 12/23 (PS 12/23) has been published by the FSA this month, setting out changes to the client money rules in the Client Assets sourcebook (CASS) to bring them in line with the segregation and portability regime under the Regulation on OTC derivatives, central counterparties and trade repositories (EMIR).

Amongst other changes, the rules have been amended to clarify the FSA's position in relation to title transfer collateral arrangements. The scope of the CASS rules has also been extended to apply to situations where a clearing member is a member of a third-country central counterparty (CCP) recognised under EMIR. Appendix 1 to PS 12/23 contains the Client Assets Sourcebook (European Markets Infrastructure Regulation) Instrument 212 (FSA 2012/76). This will come into force on 1 January 2013.

The new rules in PS 12/23 address only the first part of Consultation Paper 12/22. The FSA is still considering the feedback on Parts II and III and a further policy statement is expected in early 2013.