top of page

What exactly is CASS 13?

In the fast-changing world of finance, understanding compliance standards is essential for both businesses and individuals. Among these standards, CASS 13 plays a crucial role in protecting client assets in the claims management industry. This post explores what CASS 13 is, its implications and why it matters for all stakeholders in the claims management sector.


What is CASS 13?


CASS 13 stands for Client Assets Sourcebook Rule 13, a vital part of the broader Client Assets Sourcebook (CASS) set up by the Financial Conduct Authority (FCA). At its core, CASS 13 emphasises the safeguarding of client money and assets, ensuring that claims management firms manage them with care and openness.


The regulation provides clear guidance on how firms should handle clients' money. For instance, when a claims management firm fails, CASS 13 aims to ensure that clients receive their money back quickly, which highlights the significance of CASS 13 for both firms and their clients.


Eye-level view of a financial district in the UK

Key Requirements of CASS 13


For compliance with CASS 13, firms must maintain accurate and comprehensive records regarding client money.


They are also required to conduct daily internal and external client money reconciliations to ensure transparency and accountability. These reconciliations help verify that the firm's records match clients' money held at the bank.


Another key aspect of CASS 13 is the segregation of client money from the firm's own funds. This separation ensures that client money is protected and allows for a clear record of client assets in times of financial difficulty. During periods of financial distress, this measure can significantly affect client outcomes, ensuring they receive their rightful restitution without lengthy delays.


Moreover, for claims management firms, following CASS 13 helps reduce risks linked to asset misappropriation and mismanagement. Non-compliance can result in hefty fines, along with serious damage to a firm's reputation. By adhering to CASS 13, firms can effectively implement internal controls and governance structures that proactively address potential risks associated with client assets.


Close-up of documents labeled with financial regulations

Navigating CASS 13 in the Claims Management Sector


Understanding CASS 13 is vital for anyone involved in the claims management sector that holds or receives client money. This regulation underscores the significance of transparency, accountability and protection of client assets. The consequences of mismanagement can be severe, so both firms and clients must stay informed about CASS 13.


Compliance with CASS 13 does more than protect clients, by fostering a culture of trust and reliability, CASS 13 helps build strong relationships between claims management firms and their clients. Engaging with CASS 13 is about more than meeting regulatory standards; it is about ensuring that client money is managed safely and responsibly.


Training on CASS 13


To ensure compliance with the regulation, it is vital that firm ensures the relevant staff are regularly trained on the requirements and obligations of CASS 13. Such training should be well documented to evidence it to the FCA, should they ever request it.


At Andrew Swan Law, we are about to launch a new online training course for CASS 13. It is a 45-minuute course, which looks in depth at the CASS requirements. It is ideal for induction or refresher training. It has multiple-choice questions throughout and on successful completion the candidates receive a Certificate of Competence.


The training is only £55 plus VAT per person and will be found at Training | Andrew Swan Law

bottom of page