Title Transfer Collateral Arrangements

Regulatory Roundup 23 contained details of the changes to CASS concerning title transfer collateral arrangements (TTCA).

The FSA felt that some firms were using the then current TTCA provisions to indiscriminately remove clients’ money from the client money protection regime. The effect of the changes was that in respect of spread bettingand CFD business TTCA arrangements only applied to non-retail clients. Firms with retail clients that made use of TTCA would need to ensure that those clients’ money and assets are afforded the protections set out in CASS.

As set out in chapter 3 of CP11/15 the FSA proposes to extend the protection to firms offering rolling spot forex contracts to retail clients. The consultation period has been shortened to one month (29 August) with proposed rules coming into force 1 October.