CASS Audit Services - CASS 5 & CASS 7 Audits - FCA-Regulated Investment Firm Audits

The Financial Conduct Authority's (FCA) Client Assets Sourcebook (CASS) regulations impose strict requirements on investment firms holding client money and assets. CASS audits are mandatory for FCA-regulated firms when money is managed on behalf of clients, providing critical assurance to both regulators and clients that client assets are properly safeguarded. Acumon undertakes comprehensive CASS audits (CASS 5, 6 and 7), ensuring your firm's compliance with FCA Handbook Sections 5.1, 6.1 and 7.10 and helping you better understand your commercial risks.

Understanding CASS Audits

CASS audits are specialist regulatory audits required by the FCA for investment firms that hold client money or assets. These audits verify that firms comply with the FCA's Client Assets Sourcebook rules, which are designed to protect client assets and ensure proper segregation from the firm's own assets.

The CASS regime is one of the most stringent regulatory frameworks in UK financial services, with significant penalties for non-compliance. Our CASS audit services provide independent assurance that your firm's systems, controls, and processes meet FCA requirements, protecting both your firm and your clients.

CASS Regulatory Compliance

We support your firm's compliance with CASS UK legislation and enhance your understanding of commercial risks. Acumon is regulated by the ICAEW and the FRC, providing the regulatory standing and expertise required for CASS audits. When needed, our CASS 5, 6 and 7 audit services confirm compliance with FCA Handbook Sections 5.1, 6.1 and 7.10 for FCA-regulated businesses.

The CASS regime is one of the most stringent regulatory frameworks in UK financial services, with significant penalties for non-compliance. Our CASS audit services provide independent assurance that your firm's systems, controls, and processes meet FCA requirements, protecting both your firm and your clients while helping you navigate complex regulatory obligations.

CASS 5 Audits: Client Money

CASS 5 applies to firms that hold client money, requiring strict segregation of client funds from the firm's own money. Our CASS 5 audit services verify compliance with FCA Handbook Section 5.1, including:

• Client Money Segregation: Verification that client money is held in segregated client bank accounts, separate from the firm's own funds
• Client Money Reconciliations: Assessment of daily reconciliation processes ensuring client money balances match firm records
• Client Money Calculations: Review of calculations determining the amount of client money to be held, including margin requirements and client entitlements
• Client Money Bank Accounts: Verification that client money is held in approved bank accounts meeting FCA requirements
• Client Money Records: Assessment of record-keeping systems ensuring accurate tracking of client money movements
• Client Money Controls: Evaluation of internal controls preventing misuse or misappropriation of client money

Our CASS 5 audits provide comprehensive assurance that your firm's client money handling processes comply with FCA regulations, reducing regulatory risk and protecting client assets.

CASS 6 and CASS 7 Audits: Client Assets and Custody

CASS 6 and CASS 7 apply to firms that hold client assets or provide custody services, requiring robust systems to safeguard client assets. Our CASS 6 and CASS 7 audit services verify compliance with FCA Handbook Sections 6.1 and 7.10, including:

• Client Asset Segregation: Verification that client assets are properly segregated and identifiable, separate from the firm's own assets
• Custody Arrangements: Assessment of custody arrangements ensuring client assets are held in appropriate locations meeting FCA requirements
• Client Asset Reconciliations: Review of reconciliation processes ensuring client asset records match physical holdings or custody records
• Client Asset Records: Evaluation of record-keeping systems tracking client asset movements and ownership
• Client Asset Controls: Assessment of internal controls preventing loss, misuse, or misappropriation of client assets
• Client Asset Reporting: Verification of reporting to clients regarding asset holdings and movements

Our CASS 6 and CASS 7 audits ensure your firm's custody and client asset handling processes meet FCA requirements, providing assurance to regulators and clients that assets are properly safeguarded.

Reducing Your CASS Audit Workload

We understand that CASS audits can place significant demands on your team's time and resources. Our approach is designed to minimise disruption and reduce your audit workload:

Our CASS Audit Experience

Our audit team brings extensive experience from some of the world's most recognised organisations. Members of our audit team have previously worked on audits for major international corporations including Apple, British Steel, Airbnb and Fujifilm, bringing this depth of experience to your CASS audit engagement.

Our current audit portfolio includes 10 listed entities, featuring recognised brands such as Sharp Electronics, Linguaphone and Kuoni, alongside numerous smaller companies. This varied client base showcases our ability to deliver comprehensive audits for organisations across different scales and sectors.

Why Choose Acumon for CASS Audits

CASS Audit Process

Our CASS audit process is structured to provide comprehensive compliance assessment while minimising disruption to your operations:

1. Planning and Scoping: Initial assessment of your firm's CASS activities, identification of key risk areas, and development of tailored audit approach
2. Systems and Controls Review: Evaluation of CASS-related systems, processes, and internal controls ensuring compliance with FCA requirements
3. Testing and Verification: Detailed testing of client money and asset reconciliations, segregation arrangements, and record-keeping systems
4. Compliance Assessment: Comprehensive assessment of compliance with CASS 5 and/or CASS 7 requirements, identification of any deficiencies or areas for improvement
5. Reporting: Preparation of CASS audit report for submission to the FCA, including findings, recommendations, and management responses
6. Follow-Up: Ongoing support addressing audit findings and implementing recommendations to strengthen CASS compliance

CASS Audit Reporting

CASS audits require submission of audit reports to the FCA, providing regulators with independent assurance on your firm's compliance with CASS requirements. Our CASS audit reports include:

• Assessment of compliance with CASS 5 and/or CASS 7 requirements
• Identification of any breaches or deficiencies in CASS compliance
• Evaluation of systems and controls for safeguarding client money and assets
• Recommendations for strengthening CASS compliance and reducing regulatory risk
• Management responses to audit findings and action plans for addressing deficiencies