FSA has published CP11/15 on amendments to the Client Assets Sourcebook (CASS) in the area of custody liens and title transfer collateral arrangements. FSA's proposals include:

  • extending the transitional period for the new rules prohibiting general liens for six months from 1 October 2011 and, for the same period, switching off the prohibition on general liens for all agreements currently subject to the rules prohibiting liens;
  • allowing certain custody liens over omnibus accounts;
  • clarifying the use of custody liens in overseas jurisdictions; and
  • prohibiting the use of title transfer collateral arrangements in relation to rolling spot forex contracts entered into with retail customers.

The consultation on the extension of the transitional period and the prohibition on title transfer collateral arrangements closes on 29 August 2011 with the new rules due to commence on 1 October 2011. The consultation on custody liens over omnibus accounts and use of such liens in overseas jurisdiction closes on 28 October 2011 with the new rules due to commence on 1 April 2012. (Source: Consultation paper: Client assets sourcebook (CP11/15))