FSA Updates Client Assets Regime to Reflect EMIR

The Financial Services Authority has set out the final version of changes to its rules governing client assets to accommodate the provisions of European Market Infrastructure Regulation. For example, the current rules stipulate that the failure of a firm will trigger the pooling of all client monies for distribution, inclusive of any amounts payable by a central counterparty for a client transaction account. However, EMIR does not allow any client money held by a clearing member firm in a client transaction account at a central counterparty to be affected by such pooling and distribution.