Further moves to strengthen CASS audit standards

Recently-proposed revisions to the Financial Reporting Council CASS Assurance Standard as well as an FCA communication about CASS record-keeping requirements for depositaries of AIFs and UCITS, where delegated custody models are in place, impose a range of new requirements. Amarjit Singh and Isaac Mutyaba highlight the key changes and likely impact on FCA client asset audits.

Amarjit Singh is a partner and EMEIA assurance blockchain leader in the financial services space, while Isaac Mutyaba is a senior manager for banking and capital markets, at Ernst & Young. Contact them on asingh@uk.ey.com and imutyaba@uk.ey.com.

The Financial Reporting Council CASS Assurance Standard (‘the Standard’), which became effective on 1 January 2016, was introduced with the specific aim of enhancing the quality of client assets audits in the financial services industry. The main purpose of the Standard was to support auditors in providing high-quality assurance over the control systems operated by regulated firms; additionally, the Standard outlined guidelines specifying when auditors should report to the Financial Conduct Authority.