Client Money & Assets Exam – Quiz 09

Last Updated: June 2024

Table of Contents

CISI Exam Quiz 09 Topics Covers:

understand the objectives of the UK CASS regime and the interaction with the FCA’s statutory objectives
know the importance of legal entity separation
understand the importance of client agreements
understand the difference between contractual and actual settlement and the key implications for client assets segregation
know that the UK operates a trust regime and other types of regime (agency and custodial regimes)
understand the fundamental concepts of trust law, including the concept of fiduciary duty, statutory trust and pollution of the trust
know how legal title is registered and recorded
understand the meaning and purpose of the elements of the FCA Handbook that are relevant to client assets protection, including
Senior Management Arrangements, Systems and Controls (organisational arrangements) (SYSC)
understand the scope of regulated activities which could give rise to client assets
know the geographical application of CASS rules
know which permissions could give rise to client money obligations
know how permission to hold client money is granted
know the difference between holding client money and deposit taking
understand the application of the banking exemption
know the roles and responsibilities of the following in relation to client assets protection
know the classifications of authorised firms as per CASS 1A
understand the normal approach to client money segregation
know where, and into which types of account, client money can be deposited
know the definitions of general client bank accounts and designated client bank accounts
know the function of an acknowledgement letter
be able to apply the requirements of CASS to completing an acknowledgement letter, using the FCA templates
understand when money becomes client money, including the treatment of interest and commission
understand when money ceases to be client money
know the treatment of allocated but unclaimed client money
know how to treat mixed remittance
know the requirements around client money held in different currencies
know the difference between client bank accounts and client transaction accounts and the different treatment of each
understand the alternative approach to client money segregation and the approaches to managing risk arising from its use
know the rules around allocation of client money, including unidentified and unallocated amounts

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