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FRC issues revised Client Asset Assurance Standard

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10 Dec 2019

The Financial Reporting Council (FRC) has issued a revised Client Asset Assurance Standard (CASS Standard).

The CASS Standard establishes requirements and provides guidance for CASS auditors reporting to the Financial Conduct Authority (FCA) in accordance with its SUP (Supervision Manual) rules in respect of engagements that involve evaluating and reporting on a regulated firm’s (firm) compliance with the FCA’s CASS rules and other rules relevant to the holding of client assets.

The CASS Standard is applicable to the CASS audit of each firm that is required to have a CASS audit pursuant to SUP 3. 3

More specifically, the CASS Standard establishes requirements with respect to:

  • The process for forming, and the expression of, reasonable assurance opinions;
  • The process for forming, and the expression of, limited assurance opinions;
  • The provision of reasonable assurance to the FCA with respect to a firm’s proposed adoption of:
    • i. The alternative approach to client money segregation; and
    • ii. A non-standard method of client money reconciliation1; and
  • CASS auditor confirmations in respect of non-statutory client money trusts.

The CASS Standard is effective for reports to the FCA with respect to Client Assets for periods commencing on or after 1 January 2020.

A press release and the revised standard are available on the FRC website.

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