The FCA has published Policy Statement 14/10: Client money held in Individual Savings Accounts: Feedback to CP14/9 and final rules (PS14/10).
In PS14/10, the FCA sets out changes to the rules in the Client Assets sourcebook (CASS). These affect Individual Savings Accounts (ISA) managers who manage either stocks and shares ISAs or cash ISAs, and who hold, or wish to hold, these monies as client money. It does not affect ISA managers who hold money within ISAs that they manage as deposits with themselves. PS14/10 may also be of interest to deposit takers of money held within ISAs managed by investment firms.
PS14/10 publishes rule changes that affects investment firms managing ISAs:
- requiring all investment firms who hold any money within stocks and shares ISAs to hold these sums as client money; and
- allowing investment firms that manage cash ISAs to opt into the CASS regime and elect to hold money in cash ISAs as client money.
The new rules came into force on 1 July 2014.