Safeguarding and administering investments meaning

In this issue: Court of Protection UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Regulatory compliance for Private Client Pensions, insurance and tax efficient investments International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Useful information Court of Protection Authorisation to withdraw life-sustaining treatment (Royal Free London Hospital NHS Foundation Trust v RH (by his litigation friend, the Official Solicitor)) The Court of Protection approved the Trust’s bid to authorise the cessation or withholding of life-sustaining care for RH, a 35-year-old man without capacity. It found he lacked capacity to decide about treatment because he was gravely ill with irreversible multi-organ failure: a persistent bile leak, failing liver and kidneys, inadequate bone marrow and a non-functioning intestinal system, with life expectancy measured in...

Definition 'Custody' (as it is commonly termed) is a regulated activity under article 40 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO). It comprises both of the following: the safeguarding of assets that belong to another person, and the administration of those assets. Arranging custody (for one or more other persons to carry on that activity) is itself a separate regulated activity under SI 2001/544, art 40. The activity applies to assets that are designated investments (ie securities or contractually-based investments). Administering an investment may, for example, include crediting income generated by an investment to the beneficiary's account; however, discretion must not be exercised when undertaking these functions, otherwise the conduct falls within another regulated activity (advising on investments, or managing investments), for which separate permission will be required. Safeguarding an investment means keeping it in safe custody, for instance holding a share certificate securely. The Client Assets Sourcebook The Client Assets Sourcebook...

Scope of this Practice Note This Practice Note sets out the Financial Conduct Authority’s (FCA) custody requirements contained in the Client Assets sourcebook (CASS), a component of the FCA Handbook, that regulated firms must adhere to when safeguarding and administering investments. These provisions cover custody assets, encompassing safe custody investments (being designated investments that a firm accepts or holds for a client) and any additional assets kept within the same portfolio as those safe custody investments for that client. It therefore sets parameters for firms’ conduct whenever they hold or control a client’s designated investments and any associated assets within that client’s portfolio appropriately. What do the cover? The chapter 6 custody rules in the Financial Conduct Authority’s (FCA) Client Assets sourcebook (CASS) explain the steps a firm must take when it undertakes the regulated activity of safeguarding and administering investments. For further detail on this activity, see Practice Note: Safeguarding and administering investments. Those rules extend to custody assets, comprising safe custody investments (that is,...

This Practice Note outlines various exclusions that may apply to particular regulated activities connected with investments. It provides a concise overview of the key principles of financial services regulation. In particular, it introduces the concept of the ‘general prohibition’ in section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), which states that a person must not undertake regulated activities in the UK unless that person is authorised or exempt... The general prohibition Under FSMA 2000, s 19, carrying on regulated activities in the UK is not permitted unless the person is authorised or exempt; this is known as the general prohibition. For details on the territorial reach of the general prohibition, see Practice Note: Territorial scope of the prohibition... According to FSMA 2000, s 31, an authorised person is someone who: has been granted permission by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) under FSMA 2000, Part 4A to carry on specified regulated activities is a...