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 are in SUP 16.
- 31/05/2005
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 reporting requirements for mortgage and insurance intermediaries
are set
out in the
Retail Mediation Activities Return (RMAR), which
firms must submit electronically via the internet, using our 'Firms Online'
system (www.fsa.gov.uk/pages/doing/regulated/firms/index.shtml). The RMAR is 'tailored' for each individual firm in line with its
regulated activities and other factors, such as legal status. This is to ensure
that we only ask for information that is relevant to the supervision of each
firm.
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What information do you need to submit in the RMAR?
MIGI 11.1.4
See Notes
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When and how often do I have to submit the RMAR?
MIGI 11.1.5
See Notes
The
Handbook requirements relating to RMAR reporting come into force on 1 April
2005. So, firms need to ensure that they are collecting the necessary data
from this date. Starting in July 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.- 31/05/2005
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
Your
firm's timetable for RMAR reporting will be set out within the Firms Online
system, based on the data we hold on your firm. The tailored RMAR for your
firm will automatically be available for you to complete at the end of each
reporting period.
- 31/05/2005
MIGI 11.1.8
See Notes
The reporting requirements are in SUP 16.7.76 R to SUP 16.7.81 G. In SUP
16 Ann 18A, we list the data items within the RMAR
and SUP 16 Ann 18BG contains guidance notes to help you complete it. Further
help is available as part of the Firms Online system, and we will also make
an online training course available on our website in due course.
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MIGI 11.1.9
See Notes
The transitional
rules for reporting are in SUP TR 12BR to SUP TR 12FR.
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Other requirements
MIGI 11.1.10
See Notes
Your firm is also required to check 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 R 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 Firms Online system (www.fsa.gov.uk/pages/doing/regulated/firms/index.shtml) - as explained in Part I, paragraph 10.2.6 - and notify us if any
data is incorrect. This requirement is in addition to the notification requirements
set out in Part I, paragraph 11.2 below.
- 31/05/2005
MIGI 11.1.11
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.
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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
MIGI 4.2.6 G
);
(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.
- 31/05/2005
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 FSMA, e.g. professional indemnity insurance cover being refused or cancelled. | |
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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 |
- 01/12/2004
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 FSMA | 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 and 6.4.6) | 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
An electronic notification form is available on the Firms Online
system, which you should use to make these notifications. Information on Firms
Online - including how to register, log on and use the system - is available
at: www.fsa.gov.uk/pages/doing/regulated/firms/index.shtml.
- 31/05/2005
MIGI 11.2.8
See Notes
In some cases, where the matter is urgent
and significant, you will need to telephone the Firm Contact
Centre (see Part I, paragraph 20.1.13 for contact
details).
- 31/05/2005
MIGI 11.2.9
See Notes
The main 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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