The Client Asset Sourcebook (CASS) from the Financial Conduct Authority (FCA) details strict rules in the financial services industry. The rules apply to all businesses that hold or control client money or safe custody assets. Regardless if you’re an asset manager, bank, or wealth manager in the financial services industry. Your business needs to manage CASS rules in the right way.
What is CASS?
The CASS rules set out by the FCA make it a requirement for businesses holding or controlling client assets to report the value of these assets. The FCA made these rules to help safeguard client assets in case of business insolvency. It also forces businesses to consider the risk complications when they use assets.
The CASS Rules for Your Business
There are different CASS rules to adhere to, depending on the size of your business. Your CASS firm type can be small, medium, or large and depends on the size of your custody asset holdings or client money.
- Businesses must make an annual notification about the money and assets it holds. This information leads to the classification of the size of the company.
- Companies classified as CASS medium or large firms must complete a monthly Client Money and Asset Return (CMAR).
- SMF18 dictates that CASS medium or large companies must make a senior manager or director responsible for CASS.
- CF10a dictates that CASS companies must have an approved person for CASS operational oversight. This person has to develop, implement and update CASS-related policies and report to the governing body for CASS compliance.
Using Automated Solutions in 2023
You might be nervous about opening your company and records to another business. The whole process is not as scary as you think. Automation is the way to go if you want to stay competitive and move with the times. Trying to manage everything manually, especially for CASS reporting, is not sustainable long-term.
The beauty of modern-day technology is that you can start automating your business quickly. You might think you have a unique company setup, making it difficult for someone to help you. However, you can fix this using a customized tech solution to match your business.
Creating More Time for the Compliance Department
Saving money in the current economic climate is an absolute must. Using an automated regulatory compliance solution eliminates many manual processes. You will also get a return on investment in automation. It helps to free up valuable time for other business activities.
Working in a Collaborative Partnership With a RegTech Company
It can be hard working in any partnership if you don’t go in with the right mindset. A collaborative approach is the best way, especially regarding technology. RegTech companies are experts in areas such as CASS compliance. Staying open to ideas and thinking outside the box will help to create an effective partnership.
Utilizing The Best Support From CASS Specialists
You can gain access to CASS expertise and support when working with a specialized RegTech company. These companies understand the complex requirements of the CASS rules. Instead of working tirelessly to capture everything manually. A RegTech company can help to automate processes.
A Dedicated CASS Platform
An excellent way to automate the CASS rules is by using the CASS platform offered by Ruleguard. The company is an industry-leading provider of regulatory compliance solutions in the financial services industry.
Benefits of Using Ruleguard for CASS
The Ruleguard for CASS product enables companies to document and manage all their CASS compliance activities. Here are some benefits companies gain when using the Ruleguard for CASS platform:
- Companies can access a multi-dimensional rule-mapping feature inside the platform. The feature helps to link controls and operational processes directly to applicable CASS rules.
- There is a direct feed from the regulator to the Ruleguard for CASS platform. This link means that when regulations change, the platform automatically sends a notification to the company, usually weeks in advance.
- All of the CASS data on the platform is centralized and accessible. Companies can use the platform as their primary repository and store different versions of policies and documents.
- Organizations can also use the library of CASS information and produce and update their compliance documentation. For example, you can use the information to create CASS Resolution Packs.
- The compliance team can document attestations into the platform to help with evidence collation for compliance. It makes tasks like audit preparation quicker and easier.
- Companies can use the platform to record important risk events and breaches. The compliance team can also document and score different compliance risks that affect the company.
Meeting CASS Compliance Obligations In 2023
The compliance industry is notorious for changing rules and regulations. Preparing yourself as best as possible for CASS in 2023 is the only way to stay on top. The easiest way to handle this is to work with a RegTech company and access the many benefits of automation.
Using an automated solution to manage CASS rules will save you time, money, and stress. It will also help you reduce business risks and boost compliance in your workplace. Plus, you don’t have to stop there. Many RegTech companies offer other solutions that can help you automate different processes in your business.
