Intermediaries could be affected by FSA mistake

Reynolds Porter Chamberlain (RPC) says there is a contradiction over the rules stated in the FSA’s Client Asset Sourcebook (CASS) about client money and the guidance issued by the FSA which sets out its intention behind the rules. Late amendments were introduced to CASS to allow intermediaries to hold money on behalf of customers and insurers without having to run dual accounts or systems. The amendments state client and insurer monies can co-mingle, but brokers do not have to hold client money. Negotiations with insurers on the TOBAs, resulted in many insurers agreeing to deposit mon...