CASS 10A Payment services and electronic money: resolution pack

This chapter applies to a safeguarding institution when it receives or holds relevant funds in accordance with CASS 15.

The purpose of the CASS resolution pack is to ensure that a safeguarding institution maintains and is able to retrieve information that would:

• (1) in the event of its insolvency, assist an insolvency practitioner in achieving a timely return of relevant funds held by the safeguarding institution to its clients;

• (2) in the event of a firm's resolution, assist the Bank of England or FSCS; and

• (3) in either case, assist the FCA.

A safeguarding institution must maintain and be able to retrieve, in the manner described in this chapter, a CASS resolution pack.

A safeguarding institution is required to maintain a CASS resolution pack at all times when CASS 10A.1.1R applies to it.

1. (1) The rules in this chapter specify the types of documents and records that must be maintained in a safeguarding institution'sCASS resolution pack and the retrieval period for the pack. The safeguarding institution should maintain the component documents of the CASS resolution pack in order for them to be retrieved in accordance with CASS 10A.1.7R and should not use the retrieval period to start producing these documents.

2. (2) The contents of the documents that constitute the CASS resolution pack will change from time to time (for example, because reconciliations must be included in the pack).

3. (3) A safeguarding institution is only required to retrieve the CASS resolution pack in the circumstances prescribed in CASS 10A.1.7R.

• For the purpose of this chapter, a safeguarding institution will be treated as satisfying a rule in this chapter requiring it to include a document in its CASS resolution pack if a member of that safeguarding institution'sgroup includes that document in its own CASS resolution pack, provided that:

• (1) that group member is subject to the same rule; and

• (2) the safeguarding institution is still able to comply with CASS 10A.1.7R.

1. In relation to each document in its CASS resolution pack, a safeguarding institution must:

2. (1) put in place adequate arrangements to ensure that an administrator, receiver, trustee, liquidator or analogous officer appointed in respect of it, or any material part of its property, is able to retrieve each document as soon as practicable and in any event within 48 hours of that officer’s appointment; and

3. (2) ensure that it is able to retrieve each document as soon as practicable, and in any event within 48 hours, where it has taken a decision to do so or as a result of an FCA or Bank of England request.

Where documents are held by members of a safeguarding institution'sgroup in accordance with CASS 10A.1.6R, the safeguarding institution must have adequate arrangements in place with its group members which allow for delivery of the documents within the timeframe referred to in CASS 10A.1.7R.

1. (1) For the purpose of CASS 10A.1.7R, the following documents and records should be retrievable immediately:

2. (a) the document(s) identifying the institutions referred to in CASS 10A.2.1R(2) and CASS 10A.2.1R(4);

3. (b) any acknowledgement letters referred to in CASS 10A.2.1R(3);

4. (c) a copy of each policy or guarantee referred to in CASS 10A.2.1R(5);

5. (d) the document identifying individuals pursuant to CASS 10A.2.1R(10); and

6. (e) the most recent internal safeguarding reconciliation and external safeguarding reconciliation records referred to in CASS 10A.3.1R(1)(c).

7. (2) Where a safeguarding institution is reliant on the continued operation of certain systems for the provision of component documents in its CASS resolution pack, it should have arrangements in place to ensure that these systems will remain operational and accessible to it after its insolvency.

8. (3) Contravention of (1) or (2) may be relied upon as tending to establish contravention of CASS 10A.1.7R.

Where a safeguarding institution anticipates that it might be the subject of an insolvency order, it is likely to have sought advice from an external adviser. The safeguarding institution should make the CASS resolution pack available promptly, on request, to such an adviser.

1. (1) A safeguarding institution must ensure that it reviews the content of its CASS resolution pack on an ongoing basis to ensure that it remains accurate.

2. (2) In relation to any change of circumstances that has the effect of rendering inaccurate, in any material respect, the content of a document specified in CASS 10A.2.1R, a safeguarding institution must ensure that any inaccuracy is corrected promptly and, in any event, no more than 5 business days after the change of circumstances arose.

For the purpose of CASS 10A.1.11R(2), an example of a change that would render a document inaccurate in a material respect is a change of institution identified pursuant to CASS 10A.2.1R(2).

A safeguarding institution may hold in electronic form any document in its CASS resolution pack provided that it continues to be able to comply with CASS 10A.1.7R and CASS 10A.1.11R in respect of that document.

A safeguarding institution must ensure that its governing body receives a report in respect of compliance with the rules in this chapter at least annually.

A safeguarding institution must notify the FCA in writing immediately if it has not complied with, or is unable to comply with, CASS 10A.1.3R.

A safeguarding institution must include within its CASS resolution pack:

(1) a master document containing information sufficient to retrieve each document in the institution’s CASS resolution pack;

(2) a document which identifies the institutions the safeguarding institution has appointed (including through an agent or electronic money distributor):

     (a) for the receipt or holding of relevant funds; and

     (b) for the holding of relevant assets;

(3) for each institution identified in (2), a copy of each executed agreement, including any side letters or other agreements used to clarify or modify the terms of the executed agreement, between that institution and the safeguarding institution that relates to the holding of relevant funds or relevant assets including any acknowledgement letters sent or received pursuant to CASS 15.7;

(4) a document which identifies the institutions the safeguarding institution has appointed to provide insurance or a guarantee in accordance with regulation 22 of the Electronic Money Regulations or regulation 23(12) of the Payment Services Regulations;

(5) for each institution identified in (4), a copy of each executed policy or guarantee, including any side letters or other agreements used to clarify or modify the terms of the executed policy or guarantee;

(6) a document which identifies each agent or electronic money distributor of the safeguarding institution;

(7) a document which:

    (a) identifies each member of the safeguarding institution's group involved in operational functions related to the relevant funds regime; and

    (b) for each group member identified in (a), the type of entity (such as branch, subsidiary or nominee company) the group member is, its jurisdiction of incorporation if applicable, and a description of its related operational functions;

(8) a document which:

     (a) identifies each third party which the safeguarding institution uses for the performance of operational functions related to the relevant funds regime;

     (b) describes how to gain access to relevant information held by that third party; and

     (c) describes how to effect a transfer of any relevant funds or relevant assets held by the safeguarding institution, but controlled by that third party;

(9) a copy of the safeguarding institution's procedures for the management, recording and transfer of the relevant funds and relevant assets that it holds; and

(10) a document which identifies:

      (a) each senior manager and director and any other individual and the nature of their responsibility within the safeguarding institution who is critical or important to the performance of operational functions related to any of the safeguarding obligations imposed on the institution by the relevant funds regime; and

       (b) the individual to whom responsibility for operational oversight has been allocated under CASS 15.2.4R.

1. For the purpose of CASS 10A.2.1R(10)(a), examples of individuals within the safeguarding institution who are critical or important to the performance of operational functions include:

2. (1) those necessary to carry out internal safeguarding reconciliations, external safeguarding reconciliations and record checks; and

3. (2) those in charge of client documentation for business involving relevant funds and relevant assets.

For the purpose of CASS 10A.2.1R(2), a safeguarding institution must ensure that the document records:

1. (1) the full name of the individual institution in question;

2. (2) the postal address, email address and telephone number of that institution; and

3. (3) the numbers of all accounts opened by that safeguarding institution with that institution.

1. A safeguarding institution must include, as applicable, within its CASS resolution pack:
2. (1) the records required under:

3. (a) CASS 15.4.11R (Appointment of a third party to manage relevant assets) and CASS 15.6.7(Selection and appointment of third parties);

4. (b) CASS 15.8.3R and CASS 15.8.8R(Records and accounts); and

5. (c) CASS 15.8.9R(Records and accounts);

6. (2) the policies and procedures referred to in CASS 15.8.1R(Policies and procedures); and
7. (3) the standard terms and conditions incorporated into its contracts with clients.

CASS 10.3.1R does not change the record keeping requirements of the rules referred to therein.