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1 Client AssetsCASS ContentsClient AssetsCASS 1 Application and general and application: who? what? application: where? : particular : electronic media and E-CommerceCASS 1 ACASS firm classification and operational for CASS operational oversightCASS and 5 Client money: insurance distribution money as agent of an insurance Client money and the operation of Client money money keeping of Client 's documents and other assets5 Annex 1 Segregation of designated investments: permitted investments, generalprinciples and conditions (This Annex belongs to n CASS R)CASS 6 Custody of Client Assets and arranging for Assets to be deposited with of safe custody , accounts and of custody Assets after a failuren Release 22l Aug iCASS ContentsCASS 7 Client money and of Client requirements: Client of Client money held by a third , accounts and standard methods of internal Client money member Client money sub-pools7 Annex 2 Client bank account acknowledgment letter template7 Annex 3 Client transaction account acknowledgment letter template7 Annex 4 Authorised central counterparty acknowledgment letter template7 Annex 5 Guidance notes for acknowledgement letters (CASS )

2 7 Annex 6 Sub-pool disclosure documentCASS 7 AClient money distribution and and pooling pooling eventsCASS of and internal controlsCASS 9 Information to broker's daily report to brokerage agreement disclosure to clients concerning custody Assets and Client to clients on requestCASS 10 CASS resolution , purpose and general content records forming part of the CASS resolution packCASS 11 Debt management Client money classificationn Release 22l Aug iiCASS for CASS operational of Client money and the discharge offiduciary an approved bank at which to hold Client bank account acknowledgement and the operation of Client money to , accounts and 11 resolution money distribution in the event of a failure of afirm or approvedbank11 Annex 1 CASS debt managementfirm Client bank account acknowledgementletter template11 Annex 2 Guidance notes for Client bank account acknowledgement letters ( )CASS 12 Commodity Futures Trading Commission Part 30 exemption of Client moneyCASS 13 Claims management.

3 Client requirements and responsibility for CASS an approved bank at which to hold Client bank account acknowledgement and the operation of Client money due and payable to due to a Client or third offiduciary , accounts and money distribution in the event of a failure of afirm or approvedbank13 Annex 1 CASS Client bank account acknowledgement letter template13 Annex 2 Guidance notes for Client bank account acknowledgement letters ( )CASS 14 Temporary permissions regime Client Assets permission CASS firm Permission Client Assets permission auditor s agents and appointed representatives of TPfirmsCASS 14 Annex 1 RTemporary permissions Client asset return (TPCAR)CASS 14 Annex 2 GGuidance notes for the TPCARn Release 22l Aug iiiCASS ContentsTransitional provisions and SchedulesTP 1 Transitional ProvisionsSch 1 Record keeping requirementsSch 2 Notification requirementsSch 3 Fees and other required paymentsSch 4 Powers exercisedSch 5 Rights of actions for damagesSch 6 Rules that can be waivedn Release 22l Aug ivCASS Contentsn Release 22l Aug vClient AssetsChapter 1 Application and generalprovisionsn Release 22l Aug 1/1 CASS 1 : Application and generalSection : Application and Release 22l Aug 1 and applies to a firm as specified in the remainder of this purpose of this chapter is to set out to whom, for what activities, andwithin what territorial limits the rules, evidential provisions and guidance inCASS 1 : Application and generalSection : General application: who?

4 Provisionswhat? Release 22l Aug 1 application: who? what?General application: who?..The rules in n CASS set out the maximum scope of this sourcebook . Theapplication of CASS is modified for certain activities by 1n CASS Alsoparticular chapters or sections of CASS may have provisions which limit applies to every firm, except as provided for in n CASS R, withrespect to the carrying on of:(1) all regulated activities except to the extent that a provision of CASS provides for a narrower application; and(2) unregulated activities to the extent specified in any provision of does not apply to an the exception of this chapter and the insurance Client money chapter,CASS does not apply to:(1) an authorised professional firm with respect to its non-mainstreamregulated activities; or(2) the insurance Client money chapter does not apply to an authorisedprofessional firm with respect to its non-mainstream regulated activities,which are insurance distribution activities, if:(1) the firm's designated professional body has made rules whichimplement article of the IDD;(2) those rules have been approved by the FCA under section 332(5) ofthe Act; and(3) the firm is subject to the rules in the form in which they 1 : Application and generalSection : General application: who?

5 Provisionswhat? Release 22l Aug 1/4(1) In the Client money chapter and the insurance Client money chapter,an insurance undertaking acts as such when it carries on the businessof effecting or carrying out contracts of insurance.(2) An insurance undertaking does not act as such when it enters into areinsurance contract as a Client of the reinsurer.[deleted]General application: what?..(1) [deleted](2) [deleted](3) [deleted](3A) [deleted](4) [deleted](5) [deleted](6) [deleted](7) The debt management Client money chapter applies to CASS debtmanagement firms receiving or holding Client money for, or on behalfof, a Client in the course of or in connection with debt for retail clients, professional clients and (1) CASS applies directly in respect of activities conducted with or for allcategories of clients.(2) [deleted](3) The insurance Client money chapter does not generally distinguishbetween different categories of Client .

6 However, the term consumer isused for those to whom additional obligations are owed, rather thanthe term retail Client . This is to be consistent with the clientcategories used in the Insurance: New conduct of Businesssourcebook.(4) Each provision in the collateral rules, custody chapter, the clientmoney chapter and n CASS 9 (Information to clients) makes it clearwhether it applies to activities carried on for retail clients,professional clients or both.(4A) There is no further modification of the rules in the chapters referredto in (4) for activities carried on for eligible counterparties. SuchCASS 1 : Application and generalSection : General application: who?provisionswhat? Release 22l Aug 1/5clients are treated in the same way as other professional clients forthe purposes of these rules.(5) The debt management Client money chapter generally applies inrespect of relevant dealings with the Client category known ascustomers.

7 In general, the Client categories of retail clients,professional clients, as well as eligible counterparties, have norelevance to credit-related regulated activities, including debtmanagement activities.[deleted]Application for (1) The fact that a firm's Client is an affiliated company for MiFIDbusiness does not affect the operation of CASS to the firm in relationto that Client .(2) For business that is not MiFID business , the operation of the custodychapter or the Client money chapter may differ if a firm's Client is anaffiliated company and depending on certain other conditions (see,for example, n CASS R and n CASS R).Investments and money held under different [deleted](1) A firm must not keep money in respect of which any one of thefollowing chapters applies in the same Client bank account or clienttransaction account as money in respect of which another of thefollowing chapters applies:(a) the Client money chapter;(b) the insurance Client money chapter;(c) the debt management Client money chapter.

8 (2) In accordance with n CASS R, a firm which is subject to theclient money chapter and holds money both (i) in its capacity as atrustee firm and (ii) other than in its capacity as a trustee firm mustnot keep money held in its capacity as a trustee firm in the sameclient bank account or Client transaction account as money held otherthan in its capacity as a trustee firm.(3) To the extent that the restriction under (1) or (2) applies to a firm,the Client bank accounts and Client transaction accounts that a firmholds in respect of different chapters or in its different capacities (asthe case may be) must be separately purpose of the rules regarding the segregation of investments andmoney held under different regimes is to reduce the risk of confusionbetween Assets held under different regimes either on an on-going basis oron the failure of a firm or a third party holding those 1 : Application and generalSection : General application: who?

9 Provisionswhat? Release 22l Aug 1/6A firm may, where permitted by the relevant rules opt to hold under a singlechapter money that would otherwise be held under different chapters (seen CASS R and n CASS R). However, making such an election doesnot remove the requirement under n CASS (1).CASS 1 : Application and generalSection : General application: where? Release 22l Aug 1 application: where?The rules in n CASS set out the maximum territorial scope of thissourcebook. Particular rules may have express territorial establishments: CASS 1 to n CASS 13 apply to every firm, in relation to regulated activitiescarried on by it from an establishment in the United territorial scope of n CASS 14 is set out at n CASS [deleted][deleted]CASS 1 : Application and generalSection : Application: particular Release 22l Aug 1 : particular activitiesOccupational pension scheme firms (OPS firms).

10 In the case of OPS activity undertaken by an OPS firm, CASS applies with thefollowing general modifications:(1) references to customer are to the OPS or welfare trust, whichever fitsthe case, in respect of which the OPS firm is acting or intends to act,and with or for the benefit of which the relevant activity is to becarried on; and(2) if an OPS firm is required by any rule in CASS to provide informationto, or obtain consent from, a customer, that firm must ensure that theinformation is provided to, or consent obtained from, each of thetrustees of the OPS or welfare trust in respect of which that firm isacting, unless the context requires lending activity with or for (1) The custody chapter and the Client money chapter apply in respect ofany stock lending activity that is undertaken with or for a Client by afirm.(2) The collateral rules apply, where relevant, in respect of stock finance (1) The custody chapter and the Client money chapter apply in respect ofcorporate finance business that is undertaken by a firm.