Complying with CASS rules in the insurance industry

Recently, the FCA spotlight has turned to the insurance sector, focusing on CASS 5 obligations. This was reinforced in the recent Dear CEO letter issued by the FCA on the importance of maintaining adequate client money arrangements for general insurance intermediaries.

In this correspondence, the FCA noted their concern that over half of insurance firms they had assessed did not appear to perform a client money calculation in line with the rules of CASS 5. This is a key regulatory requirement for in-scope CASS 5 firms and those firms must be able to show evidence of compliance with the FCA CASS rules.

This paper explores the key CASS 5 requirements, as outlined in the FCA’s handbook, as well as the other CASS regulations that affect firms operating within the insurance sector.

Topics covered:
• CASS 5 – client money insurance distribution activity.
• Requirements of CASS 5 and the FCA’s client money guide.
• CASS governance arrangements.
• How AutoRek provides an enhanced framework for CASS governance.