MIGI 11
Reporting and Notifications
MIGI 11.1
Reporting requirements
- 01/12/2004
MIGI 11.1.1
See Notes
We require insurance and mortgage intermediaries
to report certain information to us on a regular basis. Our rules relating
to reporting requirements for mortgage and insurance intermediaries are in SUP 16.
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Why do we require periodic information from firms?
MIGI 11.1.2
See Notes
We need to receive timely information
from firms that carry on mortgage and insurance mediation activities so that
we can effectively supervise them. The information we collect helps us to
monitor firms' adherence to the threshold conditions (see Part I, paragraph
4.2.5) and specific rule requirements, and allows us to spot trends in individual
firms and in the market as a whole. It also helps us to identify firms on
which we should target supervisory attention.
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How is information submitted?
MIGI 11.1.3
See Notes
The main reporting requirements for mortgage and insurance intermediaries
are known
as the
Retail Mediation Activities Return (RMAR), which must be submitted electronically,
using either:
(1) internet-based submission, where users will log in to the FSA's
secure website area and complete forms online; or
(2) direct data submission, where a firm's system will connect directly
to the FSA's system over a secure internet link.
The information
requirements in the RMAR differ depending on firm type and the regulated activities
carried on by a firm. This is to ensure that we only ask for information that
is relevant to the supervision of each firm.- 01/12/2004
What information do you need to submit in the RMAR?
MIGI 11.1.4
See Notes
- 01/12/2004
When and how often do I have to submit the RMAR?
MIGI 11.1.5
See Notes
RMAR reporting will not commence until
1 April 2005, even though firms will become authorised before this date. From
1 April 2005, we will require the RMAR to be submitted twice each year within
30 business days of the end of the relevant reporting period. The reporting
periods are:
(1) the six months immediately following a firm's accounting reference
date; and
(2) the six months immediately preceding a firm's accounting reference
date.
Larger firms,
defined as those with annual income of more than £5m in the previous
year, will be required to submit the financial information sections every
three months.- 01/12/2004
MIGI 11.1.6
See Notes
There is a transitional arrangement in
place for smaller firms (defined as those with annual income of less than
£60,000). For the first year this arrangement exempts these firms from
the requirement to submit financial information at their financial year mid-point
(making the financial reporting requirements annual rather than half yearly).
- 01/12/2004
MIGI 11.1.7
See Notes
The reporting requirements are in SUP
16.7.76 R to SUP 16.7.81 G. SUP
16 Ann 18A contains a proforma of the RMAR and SUP
16 Ann 18B contains guidance notes to help you complete
it.
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MIGI 11.1.8
See Notes
The transitional rules for reporting
are in SUP TR 12 BR to SUP TR 12 FR.
- 01/12/2004
Other reporting requirements
MIGI 11.1.9
See Notes
Your firm is also required to confirm
each year, within 30 business days of its accounting reference date, that
we have the correct 'standing data' for the firm (16.10.4R). A firm's standing
data is the information in SUP 16 Annex 16 and
includes, for example, the name and registered office of the firm, the regulated
activities for which the firm has permission, the name and address of the
firm's auditor (if applicable) and its accounting reference date. Your firm
should check its standing data through the FSA website as explained at SUP
16.10.4 R to SUP 16.10.6. This requirement is in addition
to the notification requirements set out in Part I, paragraph 11.2 below.
- 01/12/2004
MIGI 11.1.10
See Notes
We also collect data (known as product
sales data or 'PSD') on individual transactions in mortgages and pure protection
products. However, this data is submitted by the product providers rather
than the intermediary firms (see SUP 16.11 for
details). This information enables us to:
(1) identify which intermediaries (and product providers) are selling
particular types of product (so helping us target both our firm specific and
our thematic work);
(2) identify business being undertaken by particular intermediary
firms; and
(3) identify trends in different marketplaces, in connection with
particular types of products and in connection with individual firms.
- 01/12/2004
MIGI 11.2
Notifications
- 01/12/2004
MIGI 11.2.1
See Notes
In addition to regular periodic reporting,
your firm must make notifications in certain circumstances. The main circumstances
are set out below.
- 01/12/2004
Matters having a serious regulatory impact
MIGI 11.2.2
See Notes
Your firm must let us know immediately
when it becomes aware, or has information that reasonably suggests, that any
of the following has occurred, may have occurred or may occur in the foreseeable
future:
(1) if your firm fails to satisfy one or more of the threshold conditions
(there is more information on these in Part I, Chapter 4);
(2) any matter that could have a significant adverse impact on your
firm's reputation;
(3) any matter that could affect your firm's ability to continue to
provide adequate services to customers and which could result in serious detriment
to a customer of the firm; or
(4) any matter in respect of your firm that could result in serious
financial consequences to the financial system or to other firms(see SUP 15.3.1 R (4)).
- 01/12/2004
Communications with us in line with Principle 11
MIGI 11.2.3
See Notes
As set out
in
SUP 15.3.8 G
,
compliance with Principle 11 includes, but is not limited to, giving us notice
of:
| 1. Any proposed restructuring, reorganisation or business expansion, which could have a significant impact on your firm's risk profile or resources, including but not limited to: | |
| Starting to provide a new product or service (you may need to apply for a variation of permission). | |
| Ceasing to undertake a regulated or ancillary activity, or significantly reducing the scope of such activities. (You may need to apply for a variation of permission). | |
| Entering into, or significantly changing, a material outsourcing arrangement. | |
| Any change in your firm's prudential category. | |
| 2. Any significant failure of your firm's systems or controls (including those reported to your firm by your auditor - if applicable). | |
| 3. Any action that your firm proposes to take which would result in a material change in its capital adequacy or solvency including, but not limited to: | |
| Any action that would result in a material change in your firm's financial resources or financial resources requirement. | |
| A material change resulting from the payment of a special or unusual dividend or the repayment of share capital or a subordinated loan | |
| 4. Significant breaches of rules or other requirements under the Act, e.g. professional indemnity insurance cover being refused or cancelled. | |
- 01/12/2004
Core information where advance notice is required
MIGI 11.2.4
See Notes
You need to
give us advance notice if there is going to be a change to the following pieces
of information:
| Notification | Supervision sourcebook (SUP) reference |
| A change in your firm's name | SUP 15.5.1 R |
| A change in address (to the principal place of business) | SUP 15.5.4 R |
| A
change to the legal status of your firm (You may be required to send us a new application for Part IV permission.) | SUP 15.5.5 R |
| A change to supervision by an overseas regulator | SUP 15.5.7 R |
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General notification requirements
MIGI 11.2.5
See Notes
There are
also the following general notification requirements:
| Breaches of rules and other requirements in or under the Act | SUP 15.3.11 R |
| Civil, criminal or disciplinary proceedings against a firm | SUP 15.3.15 R |
| Fraud, errors and other irregularities | SUP 15.3.17 R |
| Insolvency, bankruptcy and winding up | SUP 15.3.21 R |
| Change of accounting reference date | SUP 16.3.17 R |
| Change of controller | SUP 11.3 |
| Approved
persons: employees who start performing controlled functions, those who change
or add controlled functions or those who cease performing controlled functions. (There are standard forms to use called 'Approved Persons regime forms' - see Part I, paragraph 6.4.4.) | SUP 10.11 |
| Change of auditor (appointed under FSA rules) | SUP 3.3 |
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When should you notify us?
MIGI 11.2.6
See Notes
If a notification rule requires you to
send a notification within a specified period, you must send it in time for
us to receive it before the end of the period. If the end of the period falls
on a weekend or bank holiday, you must make sure it is received no later than
the first business day after the end of the period. If a notification rule
does not require notification within a specified period, then your firm should
act reasonably in deciding when to notify us.
- 01/12/2004
How do you notify us?
MIGI 11.2.7
See Notes
You must send a notification, preferably
electronically, stating your firm's FSA Reference Number (unless stated otherwise
in the notification rule). Further details of how you can do this will be
available nearer the time.
- 01/12/2004
MIGI 11.2.8
See Notes
In some cases, where the matter is urgent
and significant, you will need to telephone the FSA Contact
Centre (see Part I, paragraph 20.1.11 for contact
details).
- 01/12/2004
MIGI 11.2.9
See Notes
The relevant Handbook section is SUP 15.
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Other considerations
MIGI 11.2.10
See Notes
You must take reasonable steps to ensure
that all information that your firm sends to us is accurate, truthful, complete
and not misleading.
- 01/12/2004
MIGI 11.2.11
See Notes
The following chapters
of this Guide are also relevant:
| Authorisation - Part I, Chapter 4 |
| Complaints Reporting to the FSA - Part I, Chapter 14.3 |
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