The CASS cash cow

Enforcement actions over breaches of client asset rules are a "steady little earner" for the regulator, comments Noline Matemera. She examines why firms keep failing to learn their lessons in this high-priority area.

Noline Matemera is a senior associate in the financial services and regulation group at law firm Stephenson Harwood. She may be contacted at noline.matemera@shlegal.com.

Last month saw the publication of yet another eye-watering fine for client money rule breaches by an asset management firm. The asset manager in question was Aberdeen Asset Managers Ltd and Aberdeen Fund Management Ltd (collectively 'Aberdeen') who failed to identify and properly protect client money held with third party banks. With the steady frequency of large fines, one can't help but wonder what it is about the Client Assets Sourcebook (CASS) regime that makes it such a sure-fire winner each time the Financial Conduct Authority takes enforcement action?