We publish proposals to amend client money rules in response to changes made to ISAs in the 2014 Budget.
Why are we consulting on this?
This CP proposes rule changes that will affect investment firms managing ISAs:
- requiring all investment managers who hold any money within stocks and shares ISAs to hold these sums as client money
- allowing investment firms who manage cash ISAs to op-into the CASS regime and elect to hold money in cash ISAs as client money, and
- excluding any money held as client money by ISA managers from rules preventing the use of unbreakable term deposits of longer than 30 days
Who does this consultation affect?
This CP should be read by:
- ISA managers who manage either stocks and shares ISAs or cash ISAs and hold, or wish to hold, those monies as client money
- deposit takers of money held within ISAs managed by investment firms
- consumers who currently have an ISA or may consider one in future
What are the next steps?
We are seeking feedback to our proposed amendments to client money rules. Please send us your comments or feedback by 25 June 2014 via our online form. Changes to the ISA Regulations are due to come into force on 1 July 2014.
We will consider your feedback and publish our rules in a Policy Statement as soon as possible after that.
Want to find out more?
For more information, see:
- HMRC’s bulletin regarding changes to ISAs
- HMRC’s Guidance Notes for ISA Managers
- CASS 7 definition of Client Money
- look at the FCA Handbook