FSA has made the new-look CASS, following its consultation on simplifying its structure. Respondents to CP 08/6 liked its approach, and FSA has now made rules that:
- delete rules and guidance to give cost benefits
- use plain English; and
- do not place significant undue burdens on firms.
The only significant changes from the original proposals are to keep the current carve-outs for firms that do not fall under MiFID on affiliated companies and approved banks. The new rules will take effect from 1 January 2009 and amend the Glossary and COBS as well as CASS. In the new-look CASS, there will be no Chapter 2 or 4. Chapters 6 (custody) and 7 (client money) now contain the rules for both MiFID and non-MiFID business, distinguishing where appropriate between scope and non-scope business. A new Chapter 7A called “client money distribution” looks at how firms should treat money. FSA will consult separately next year on how it might merge the client money rules for insurance mediation with the general client money rules.