Client Money and Custody Assets
Protect client money and custody assets through CASS scope, segregation, records, controls and exemptions.
How to prepare for UK Financial Regulation
Use 601 original multiple-choice questions to apply the regulatory perimeter, client conduct, professional ethics, market-integrity controls, complaints, compensation, data and whistleblowing requirements. The bank contains no recalled, past-paper or secure CISI items.
Core concepts
Concept 1
Explain the purpose of client-money and custody-asset rules.
Exam cue: Identify whose money or asset is held.
Concept 2
Distinguish legal ownership, beneficial interest, firm money and client money.
Exam cue: Trace receipt, registration, segregation and record.
Concept 3
Identify the scope and effect of relevant CASS exemptions.
Exam cue: Test any exemption before changing the safeguarding treatment.
Risk pitfalls and guardrails
Mixing firm and client money outside a permitted controlled exception.
Guardrail: Do not confuse regulator roles, firm permission with individual competence, suitability with appropriateness, FOS with FSCS or an official element weight with an internal topic allocation.
Confusing custody registration with beneficial ownership.
Guardrail: Do not confuse regulator roles, firm permission with individual competence, suitability with appropriateness, FOS with FSCS or an official element weight with an internal topic allocation.
Treating an exemption as removing all record and disclosure duties.
Guardrail: Do not confuse regulator roles, firm permission with individual competence, suitability with appropriateness, FOS with FSCS or an official element weight with an internal topic allocation.
Memory anchors
CASS
The FCA sourcebook governing the protection of client money and custody assets.
Segregation
Keeping client money or assets separate from the firm's own property as required.
Custody asset
A designated investment held or controlled by a firm for a client under the custody rules.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A firm receives sale proceeds for a client into its operating account. What should happen?
Why is a client bank account titled to show its status?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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