14 December 2012

FSA: Client assets regime: changes following EMIR

This Policy Statement summarises feedback received in relation to Part I of Consultation Paper 12/22, and publishes final rules making changes required under the European Market Infrastructure Regulation (EMIR). Feedback on Parts II and III of CP12/22 will be published at a later date.

The FSA has to change its rules on client assets to accommodate the European Market Infrastructure Regulation (EMIR). It consulted on this earlier this year and is now setting out the final rules.

This Policy Statement (PS) summarises the feedback FSA received to its Consultation Paper 12/22 Part I: Changes to CASS required by EMIR (CP12/22). It provides FSA’sresponse to this feedback and publishes final rules making the changes to the client assets sourcebook (CASS).

In this paper, the FSA only addresses EMIR to the extent that it affects CASS and this is separate from other changes being made to the FSA Handbook relating to EMIR. This PS does not address wider concerns on the implementation of EMIR more generally.

In Chapter 2, the FSA explains the issues raised by the consultation respondents, including: the scope of the CCPs referred to in CASS 7 and CASS 7A; the market practice of firms pre-funding margin calls relating to cleared client transactions and the interaction of this with the EMIR requirements; the use of title transfer collateral arrangements in the context of cleared client transactions; and the timing of the entry into force of the final rules published in this PS with the expected timetable for implementation of EMIR at the European level.

In Chapter 3, the FSA then summarises responses to the questions asked in CP12/22 Part I and provides its responses.

The final rules are included as an Annex to this paper and come into force on 1 January 2013.

This PS does not summarise feedback to, or publish final rules for Parts II and III of CP12/22. These parts of the consultation closed on 30 November 2012, and the FSA is still considering the feedback received.

Press release

Full policy statement

Consultation Paper 12/22

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