CASS 7 & 7A - Client Money Rules & Client Money Distribution & Transfer

The Client Assets Sourcebook (CASS) outlines a firm's duty to protect customer money and assets. The FCA considers this fundamental to consumers' rights.

Our CASS 7 & 7A: Client Money Rules & Client Money Distribution & Transfer course introduces the rules and guidance around the treatment towards client money. This includes the distribution and transfer of client money.

Start a Free Trial

Chevron Skillcast chevron graphic
CASS 7 & 7A - Client Money Rules & Client Money Distribution & Transfer

About this Course

Available as part of our FCA Compliance Library.

Learning Objectives

This course will prepare you to:

  • Understand the CASS rules for the treatment of client money, including segregation
  • Keep appropriate records in accordance with the rules of the Financial Conduct Authority (FCA)
  • Understand why accounting and reconciliations are important
  • Appreciate the use of third parties, statutory trusts and acknowledgement letters
  • Know what to do if things go wrong and client money is distributed or transferred to another firm

Course Outline


What is client money?

- Why is protecting client money important?
- Client assets or client money?
- The banking exception
- The sections of CASS 7 & 7A
- You decide: The CASS rules

Treatment of client money

- Key terms
- DvP transaction exemption
- Money due & payable to our firm
- Discharge of fiduciary duty
- Transfer of business
- Allocated but unclaimed money
- You decide: Unclaimed money
- You decide: No response

Organisational arrangements

- Third-party records
- You decide: Payment by cheque

Segregation of client money

- The normal approach
- A 95-day unbreakable deposit
- Designated bank accounts
- Diversification of client money
- Mixed remittances
- Physical receipts of client money
- Prudent segregation
- The alternative approach
- Adopting the alternative approach
- You decide: Segregating client money

Using third parties

- Client transaction accounts
- You decide: Which account?

Keeping records

- Reconciliation records
- Systems & controls
- Internal client money reconciliations
- Identifying a discrepancy
- External client money reconciliations
- Notifying the FCA
- You decide: The internal reconciliation

Statutory trusts

- Trustee firm record-keeping
- You decide: Who is responsible?

Acknowledgement letters

- FCA-prescribed templates
- Retaining the letters 
- You decide: New wording 

CASS 7A & trustee firms

- Primary pooling events
- Secondary pooling events
- Secondary pooling shortfalls
- Mixed remittance
- You decide: The secondary pooling event




Course Specifications




Approximately 50 minutes followed by a 10-question assessment.



Suitable for all staff - examples and interactivities designed for staff at all levels. No previous knowledge or experience is required.



SHARD-compliant, responsive display on all devices, accessibility on screen readers, visual design controlled via client style sheet.



All Windows, Mac OSX, iOS, Android (Flash-free for mobile compatibility). AICC and SCORM 1.2-compliant, suitable for both hosted and deployed SCORM or AICC.



Fully customisable on Skillcast Portal CMS.



Pre-translated versions not available, but all text content can be exported for translation into all languages.



Based on UK legislation, but suitable for global audiences upon the removal of UK-specific references and translation as necessary.

FCA Course Library

Our FCA Course library of over 60 training modules covers everything from high-level and conduct of business standards to thematic topics, including treating customers fairly.

Start a Free Trial

Chevron Skillcast chevron graphic
FCA Course Library