{ "docId": "019dd923-5e88-73ef-bd58-07b375a7cd5b", "docSlug": "335ba522863769dc", "documentTitle": "Banking and capital markets trends 2020: Laying the foundations for growth", "authorId": "PwC", "authorName": "PwC", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.414, "pageNumber": 68, "pageCount": 88, "prevPage": 67, "nextPage": 69, "slideType": "industry_trends", "function": "diagnose", "density": "dense", "nDataPoints": 0, "notes": "Part of a series on financial risk regulation; focuses on CASS compliance.", "elementsJson": [ "headline_text", "paragraph", "bullet_list" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd58-07b375a7cd5b/68", "deckHref": "/decks/019dd923-5e88-73ef-bd58-07b375a7cd5b", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd58-07b375a7cd5b.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd58-07b375a7cd5b#slide-68", "components": [ { "bbox": { "h": 0.25, "w": 0.45, "x": 0.05, "y": 0.65 }, "kind": "list", "text": "Complex rules are often difficult to interpret and are challenging to align to existing operational processes, leading to unidentified breaches. Changes in FCA interpretation of requirements and how these should be put in to practice, leading to breaches at firms who do not keep up to date with industry developments. Changes in products and business models, including acquisitions, lead to the scope of the CASS rules changing and not being identified by the firm. Inadequate governance and oversight arrangements, in particular in relation to third parties performing operational processes and IT controls and dependencies that underpin CASS compliance.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0becfd19-28ee-4550-bee5-b60036e4db1f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.65, "w": 0.45, "x": 0.52, "y": 0.25 }, "kind": "list", "text": "Involvement in system change programmes to ensure that CASS has been appropriately considered to minimise the risk of significant breaches. The adequacy and maturity of the CASS risk framework, including testing the effectiveness of key CASS controls and attestations. Whether key operational areas such as reconciliations align to the specific requirements of the CASS rules. The adequacy of governance and oversight arrangements, including third party administrators. Assessment of the maturity of the CASS IT risk framework, including clear scoping and allocation of responsibilities. Remediation reviews of CASS breaches. The adequacy of attestation models used across mature businesses for accountability of the CASS control environment. Testing – can be as a mock fire test – the adequacy of the firm's CASS resolution pack, including the speed to which linked documentation can be obtained (please note this is not relevant for insurance brokers).", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "57de96fe-c4ee-4b14-8735-2ac398cdd768", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.45, "x": 0.05, "y": 0.25 }, "kind": "paragraph", "text": "Client Asset (CASS) rules are in place to protect investors from the risk of loss in the event of a firm's insolvency. Since the financial crisis, this has been a particular area of focus for the FCA and has contributed significantly to the overall level of FCA fines and skilled person reviews in the last five years.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1714496d-e492-4e9c-9aa0-f22fd07cf84a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.45, "x": 0.05, "y": 0.4 }, "kind": "paragraph", "text": "There have been significant changes to the CASS rules and the auditing standards over CASS compliance in the last five years, both of which have had a big impact on regulated firms. These, along with changing FCA expectations means that firms must continue to assess their CASS arrangements and be mindful of the moving industry standards and FCA expectations. Firms should also start to think about how to get value from the new requirements with many using their CASS risk frameworks to drive out wider operational risk enhancements across other areas of their business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "44756800-ce16-439c-806a-666dd1ea8610", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.6, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Further regulation – Financial risk (1/3)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a24de104-8b0a-4c15-9c5d-44dfcecaf193", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "List presentation", "slug": "list-presentation", "agent": null, "layer": "slide", "matchId": "63268fa0-132c-4668-999d-01be7bb331a4", "evidence": "The slide contains a list of bullet points describing CASS rules and their impact.", "confidence": 0.8 } ], "frameworks": [], "arcBeats": [ { "to": 83, "from": 67, "beatId": "b0f82936-015c-49b3-b971-e0992d5219eb", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution", "beatSlug": null, "evidence": "The document offers insights and implications for firms, including the need to understand and address key themes and risks.", "position": 3, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }