SCHEDULE OF PROFESSIONAL SERVICES – CASS ASSURANCE REPORT (FCA)
1. SCOPE OF CASS REPORT
1.1 We are required to report to the firm in accordance with the Financial Conduct Authority’s (FCA’s) rules within four months of the end of the period to which the report related.
1.2 Our report (which is a ‘reasonable assurance’ report) considers whether:
• you maintained systems adequate to enable you to comply with the client money rules (and, if relevant, the mandate rules) throughout the period since the last date as at which a report was made;
• you complied with the client money rules (and, if relevant, the mandate rules) as at the period end date; and whether
• if applicable, you complied with the rules in CASS 5.6 in relation to the secondary pooling event during the period.
1.3 We are required to include in our draft report a schedule of all breaches of the CASS regulations which have come to our attention during the period. You are required by SUP 3.11 to provide us with an explanation of the circumstances that gave rise to each of these breaches, together with any remedial actions undertaken to correct them, for inclusion in our final report.
1.4 In connection with the duties above, we have a duty to carry out such investigations as we consider necessary to form an opinion on the above matters.
1.5 Our report is solely for use by the firm and, if requested, by the FCA. It is not intended for use by third parties such as your customers/potential customers or shareholders and the report shall not be provided by you to anyone other than the FCA.
2. RESPONSIBILITIES TO THE FCA
2.1 The primary responsibility for keeping the FCA informed about the affairs of the business rests with you. Under the Financial Services and Markets Act 2000 (Communications by Auditors) Regulations 2001 we have both a right and a duty to report on any circumstances in which we have reasonable cause to believe that the matter is likely to be of material significance for determining whether:
• a person is a fit and proper person to carry on regulated business; or
• disciplinary action should be taken, or powers of intervention exercised, in order to protect investors from significant risk or loss; or
• there are any other circumstances which would be relevant to the functions of the Secretary of State.
Such reports must be made in writing direct to the FCA and may be without your knowledge or consent. By virtue of the Financial Services and Markets Act 2000 (Communications by Auditors) Regulation 2001, our duty of confidentiality is not contravened by reason of such communication in good faith.
2.2 We have a duty to provide further information or verification if requested to do so by the FCA and to assist and co-operate with any other auditor or specialist person appointed under the FCA’s rules by the FCA or by yourselves at the direction of the FCA.
2.3 If, to our knowledge, we become disqualified or ineligible to act as auditors of the company in accordance with the FCA’s rules, we shall forthwith resign office and notify you and the FCA in writing that we have vacated by reason of disqualification or ineligibility.
2.4 If we resign or are removed from office or are not reappointed at the end of our term of office, we shall prepare a statement to the effect that there are no circumstances with our ceasing to hold office which we consider should be brought to the FCA’s attention, or a statement specifying all such circumstances.
Updated August 2013