On 16 August 2016, the Financial Conduct Authority (FCA) published a statement yesterday to update firms on its October 2012 Consultation Paper 12/20: Review of the client money rules for insurance intermediaries.
Despite the ongoing issues with CASS compliance, as highlighted by Towergate only last month, in light of:
- increased industry focus on protecting client money;
- better engagement with the FCA;
- the success of certain FCA initiatives regarding CASS supervision and reporting; and
- re-consideration of the costs and benefits (and particularly the impact on smaller firms) of introducing a new CASS Chapter 5 ;
the FCA has concluded that it would not be proportionate to proceed with the proposed rule changes at this time and will not implement any changes in the future without a new consultation. The existing CASS 5 rules remain in place.