CASS 7: What It Is, Why It Matters, and How It Shapes Modern Finance

When you invest through a UK-based broker or platform, your money isn’t just sitting in some digital vault—it’s protected by a rule called CASS 7, a set of rules under the UK Financial Conduct Authority that requires firms to keep client money separate from their own isrameds.com. Also known as Client Assets Sourcebook Rule 7, it’s not just paperwork—it’s your financial safety net. If a firm goes under, CASS 7 ensures your cash and investments don’t vanish with it. This isn’t theoretical. After the 2008 crash and later failures like Lehman Brothers, regulators realized: client money must be locked away, tracked, and audited—no exceptions.

CASS 7 isn’t about fancy algorithms or high-frequency trading. It’s about the basics: client money segregation, the legal requirement that firms hold your funds in separate bank accounts, and asset classification, how firms categorize what belongs to you versus what belongs to them. These aren’t buzzwords—they’re the reason your £5,000 in ETFs doesn’t disappear if the platform mismanages its balance sheet. Firms must log every pound, track every share, and submit monthly reports to the FCA. They can’t use your money to cover their own losses. No loopholes. No excuses.

And it’s not just for big investors. Whether you’re using a robo-advisor like Nutmeg, trading on Interactive Investor, or holding crypto through a UK-licensed exchange, CASS 7 applies. If the firm is authorized by the FCA and handles client money, they’re bound by these rules. That’s why you’ll see disclaimers about client asset protection on their websites—it’s not marketing fluff, it’s compliance. But here’s the catch: not all firms are created equal. Some cut corners on reporting. Others delay audits. That’s why knowing what CASS 7 requires helps you ask the right questions before you deposit a dime.

What you’ll find in this collection are posts that connect directly to CASS 7’s real-world impact. From how robo-advisors handle your cash under these rules, to why broker ratings should include asset protection checks, to how financial regulations like MiCA in Europe compare to the UK’s approach—these aren’t random articles. They’re the practical side of a rule that keeps your money safe. You’ll learn how to spot firms that follow CASS 7 properly, what red flags to watch for, and why holding cash in a regulated platform beats keeping it in an unregulated crypto wallet. This isn’t about legal jargon. It’s about making sure your investments stay yours—even when things go wrong.