The Financial Reporting Council (FRC) has published an exposure draft, Providing assurance on client assets to the Financial Conduct Authority (FCA), which the accounting regulator plans to enforce for accounting eperiods effective 1 January 2016
The assurance standard has been developed to support and challenge auditors when reporting on regulated firms' compliance with the FCA’s client asset (CASS) rules, which are designed to ensure the effective safekeeping of client assets and monies.
The proposed assurance standard will help ensure that the strengthened FCA regime is underpinned by sound assurance.
Where regulated firms fail to maintain the control regime required by the FCA rules, auditors will have to report these failings to the FCA.
Subject to consultation, the standard would apply to periods commencing on or after 1 January 2016.
The consultation is open for comment until 31 July 2015.
The exposure draft is available here