The importance behind CASS, and why you should take seriously

  • Insights

CASS – The basics

Ever since the 2008 financial crisis, asset safety has been an area of intense focus for the FCA. One of the main objectives of the CASS rules is to ensure that client assets are protected during the CASS firms insolvency. In order to facilitate this, it is essential that client money is ring-fenced from firm money, and kept in fully segregated accounts.

Under the CASS rules, a firm may deposit assets held by it on behalf of clients into accounts at a third party provider, but only if it exercises all due skill, care and diligence in the selection, appointment and periodic review of the third party and of the arrangements for the holding and safekeeping of those safe custody assets.

The rules also stipulate that firms must have a written agreement in place with the entity to which assets have been custodied. This document must outline the binding terms of the agreement between the firm and the third party, together with the  custody services which the third party is required to provide.

Complacency is not an option

CASS compliance has been an FCA priority for some time, and its interest is only likely to intensify following the recent turmoil in the banking system. Firms – along with their boards – need to ensure that they have a robust oversight and understanding of their CASS management processes.

A failure to properly undertake CASS responsibilities can have serious repercussions for managers with both regulators and investors alike. At a time when asset safety is so high on investor and regulator agenda, having the right providers in place is becoming even more important.

Why Linear?

Our CASS custody offering is designed for small and mid-market clients looking for a high level of protection of client assets. The service safeguards the financial assets held by our clients, in compliance with the FCA CASS rulebook, ring fenced away from Linear Investments through our network of Tier 1 banks and sub custodian partners.

Post Written by:

Paul Kelly


Paul is the CEO and Chairman at Linear Investments Ltd. Linear is a specialist award winning prime broker and discretionary fund manager based in London, Hamburg and Dubai. Linear’s integrated platform solution brings together all the skills, expertise, and solutions you require in one place.

Linear Investments LTD is authorised and regulated by the Financial Conduct Authority (“FCA”) FRN 537389. Linear is incorporated in England and Wales, registered no: 07330725. The value of investments, and the income from them, can go down as well as up.