FRC publishes standard on providing assurance on Client Assets
09 November 2015
The Financial Reporting Council (FRC) today publishes its Standard for audit firms on Providing Assurance on Client Assets to the Financial Conduct Authority (PDF).
The Assurance Standard covers the work auditors do when reporting to the Financial Conduct Authority (FCA) on the compliance by financial services firms, with the FCA’s Client Asset (CASS) rules. These provide for the effective safekeeping of client assets and client monies. More than 1,500 firms hold more than £100 billion of client assets and £11 trillion of other custody assets.
The FCA has recently strengthened its client asset regime. The Assurance Standard will help ensure that the strengthened regime is underpinned by sound assurance.
Melanie McLaren, FRC’s Executive Director of Codes and Standards, said:
“The effective safekeeping of client assets is an issue of significant public interest. Our Assurance Standard will support auditors in providing high quality assurance over the control systems operated by regulated firms and will support auditor reporting to the FCA.”
The development of the Standard, which will apply to periods starting on or after 1 January 2016, has been supported by the FCA.
Notes to editors:
- The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
- The final Standard has been developed following consultation earlier this year and is being published alongside a feedback statement and impact assessment.