Part

SUP Supervision manual

Chapter

Reporting requirements

Printed on: 15/11/2024

Rulebook at: 17/11/2005

SUP 16

Reporting requirements

SUP 16.1

Application

  • 01/12/2004

SUP 16.1.1

handbook-rule
This chapter applies to every firmwithin a category listed in column (2) of the table in SUP 16.1.3 R and in accordance with column (3) of that table.
  • 21/06/2001

SUP 16.1.2

handbook-guidance

The only categories of firm to which no section of this chapter applies are:

  1. (1) an ICVC;
  2. (2) an incoming EEA firm or incoming Treaty firm, unless it is:
    1. (a) a firm of a type listed in SUP 16.1.3 R as a type of firm to which SUP 16.6, SUP 16.7 or SUP 16.9 applies; or
    2. (b) an insurer with permission to effect or carry out life policies;
    3. (c) a firm with permission to establish, operate or wind up a stakeholder pension scheme;
  3. (3) a UCITS qualifier.
  • 30/09/2003

SUP 16.1.3

handbook-rule

Application of different sections of SUP 16

  • 01/04/2005

SUP 16.1.4

handbook-guidance
(1) This chapter contains requirements to report to the FSA on a regular basis. These requirements include reports relating to a firm's financial condition, and to its compliance with other rules and requirements which apply to the firm. Where the relevant requirements are set out in another section of the Handbook, this chapter contains cross references. An example of this is financial reporting for insurers and friendly societies.
(2) Where such requirements already apply to a firm under legislation other than the Act, they are not referred to in this chapter. An example of this is reporting to the FSA by building societies under those parts of the Building Societies Act 1986 which have not been repealed.
(3) Requirements for individual firms reflect:
(a) the category of firm;
(b) the nature of business carried on;
(c) whether a firm has its registered office (or if it does not have a registered office, its head office) in the United Kingdom; and
(d) whether a firm is an incoming EEA firm or incoming Treaty firm.
  • 21/06/2001

SUP 16.1.5

handbook-guidance
The reporting of complaints is covered in DISP 1.5.4 RDISP 1.5.8 G.
  • 21/06/2001

SUP 16.1.6

handbook-guidance
Reporting on pension transfers and pension opt-outs arranged by the firm against its advice is covered in COB 5.3.26 R.
  • 21/06/2001

SUP 16.2

Purpose

  • 01/12/2004

SUP 16.2.1

handbook-guidance
(1) In order to discharge its functions under the Act, the FSA needs timely and accurate information about firms. The provision of this information on a regular basis enables the FSA to build up over time a picture of firms' circumstances and behaviour.
(2) Principle 11 requires a firm to deal with its regulators in an open and cooperative way, and to tell the FSA appropriately anythingof which the FSA would reasonably expect notice. The reporting requirements are part of the FSA's approach to amplifying Principle 11 by setting out in more detail the information that the FSA requires. They supplement the provisions of SUP 2 (Information gathering by the FSAon its own initiative) and SUP 15 (Notifications to the FSA). The reports required under these rules help the FSA to monitor firms' compliance with Principles governing relationships between firms and their customers, with Principle 4, which requires firms to maintain adequate financial resources, and with other requirements and standards under the regulatory system.
  • 21/06/2001

SUP 16.3

General provisions on reporting

  • 01/12/2004

Application

SUP 16.3.1

handbook-guidance

The effect of SUP 16.1.1 R is that this section applies to every firm except:

  1. (1) an ICVC;
  2. (2) an incoming EEA firm or incoming Treaty firm, which is not:
    1. (a) a firm of a type listed in SUP 16.1.3 R as a firm to which section SUP 16.6 or SUP 16.7 applies;
    2. (b) an insurer with permission to effect or carry out life policies;
  3. (3) a UCITS qualifier.
  • 21/06/2001

Structure of the chapter

SUP 16.3.2

handbook-guidance
This chapter has been split into eightsections, covering:
(1) annual controllers reports (SUP 16.4);
(2) annual close links reports (SUP 16.5);
(3) compliance reports (SUP 16.6);
(4) financial reports (SUP 16.7);
(5) persistency reports (SUP 16.8);
(6) annual appointed representatives reports (SUP 16.9);
(7) Verification of standing data (SUP 16.10); and
(8) product sales data reporting (SUP 16.11).
  • 01/04/2005

SUP 16.3.3

handbook-guidance
The annual controllers, annual close links, persistency and annual appointed representatives reports sections are the same for all categories of firm to which they apply.
  • 30/09/2003

SUP 16.3.4

handbook-guidance
The compliance and financial reports sections are bothset out by category of firm, with detailed requirements set out in tables giving:
(1) a brief description of each report;
(2) the frequency with which the report is required; and
(3) the due date for submission of the report.
  • 21/06/2001

SUP 16.3.5

handbook-guidance
Further requirements about the reports, such as form and content, are set out in the sections for each category of firm, where this is appropriate. In many cases, however, it is more appropriate to provide this information by means of a separate annex; in these cases the relevant section refers to the annex.
  • 21/06/2001

How to submit reports

SUP 16.3.6

handbook-rule
A periodic report required to be submitted under this chapter, or under any other rule, must be submitted in writing in accordance with SUP 16.3.7 R to SUP 16.3.10 G, unless:
(1) a contrary intention appears; or
(2) the report is required under the listing rules.
  • 18/04/2002

SUP 16.3.7

handbook-rule
A written report must:
(1) give the firm's FSA firm reference number; and
(2) if submitted in paper form, be submitted with the cover sheet contained in SUP 16 Annex 13 .
  • 18/04/2002

SUP 16.3.8

handbook-rule
A written report must be:
(1) given to or addressed for the attention of the firm's usual supervisory contact at the FSA; and
(2) delivered to the FSA by one of the methods listed in SUP 16.3.9 R.
  • 21/06/2001

SUP 16.3.9

handbook-rule

Method of submission of reports (see SUP 16.3.8 R)

  • 01/04/2005

SUP 16.3.10

handbook-guidance
(1) The current published address of the FSA for postal submission of reports is:
(2) The current published address of the FSA for hand delivery of reports is:
(a)
if the firm's usual supervisory contact at the FSA is based in London, or:
(b)
if the firm's usual supervisory contact at the FSA is based in Edinburgh.
  • 25/07/2005

Complete reporting

SUP 16.3.11

handbook-rule
A firm must submit reports required under this chapter to the FSA containing all the information required.
  • 21/06/2001

SUP 16.3.12

handbook-guidance
SUP 15.6 refers to and contains requirements regarding the steps that firms must take to ensure that information provided to the FSA is accurate and complete. Those requirements apply to reports required to be submitted under this chapter.
  • 21/06/2001

Timely reporting

SUP 16.3.13

handbook-rule
(1) A firm must submit a report required by this chapter in the frequency, and so as to be received by the FSA no later than the due date, specified for that report.
(2) If the due date for submission of a report required by this chapter falls on a day which is not a business day, the report must be submitted so as to be received by the FSA no later than the first business day after the due date.
(3) If the due date for submission of a report required by this chapter is a set period of time after the quarter end, the quarter ends will be the following dates, unless another rule or the reporting form states otherwise:
(a) the firm's accounting reference date;
(b) 3 months after the firm's accounting reference date;
(c) 6 months after the firm's accounting reference date; and
(d) 9 months after the firm's accounting reference date.
(4) If the due date for submission of a report required by this chapter is a set period of time after the end of a half-year, a quarter, or a month, the dates will be determined by (a) or (b) below except where otherwise indicated:
(a) the firm's accounting reference date;
(b) monthly, 3 monthly or 6 months after the firm's accounting reference date, as the case may be.
  • 01/04/2005

Failure to submit reports

SUP 16.3.14

handbook-rule
If a firm does not submit a complete report by the date on which it is due in accordance with the rules in this chapter and any prescribed submission procedures, the firm must pay an administrative fee of £250.
  • 01/04/2005

SUP 16.3.14A

handbook-guidance
Failure to submit a report in accordance with the rules in this chapter may also lead to the imposition of a financial penalty and other disciplinary sanctions (see ENF 13.5 ). If it appears to the FSA that, in the exceptional circumstances of a particular case, the payment of any fee would be inequitable, the FSA may reduce or remit all or part of the fee in question which would otherwise be payable (see GEN 3.3.3 R
  • 01/04/2005

SUP 16.3.15

handbook-guidance
The FSA may from time to time send reminders to firms when reports are overdue. Firms should not, however, assume that the FSA has received a report merely because they have not received a reminder.
  • 21/06/2001

SUP 16.3.16

handbook-guidance
The firm is responsible for ensuring delivery of the required report at the FSA's offices by the due date. If a report is received by the FSA after the due date and the firm believes its delivery arrangements were adequate, it may be required to provide proof of those arrangements. Examples of such proof would be:
(1) "proof of posting" receipts from a UK post office or overseas equivalent which demonstrates that the report was posted early enough to allow delivery by the due date in accordance with the delivery service standards prescribed by the relevant postal authority; or
(2) recorded postal delivery receipts showing delivery on the required day; or
(3) records of a courier service provider showing delivery on the required day.
  • 21/06/2001

Change of accounting reference date

SUP 16.3.17

handbook-rule
(1) A firm must notify the FSA if it changes its accounting reference date.
(2) When a firm extends its accounting period, it must make the notification in (1) before the previous accounting reference date.
(3) When a firm shortens its accounting period, it must make the notification in (1) before the new accounting reference date.
  • 01/09/2003

SUP 16.3.18

handbook-guidance
SUP 16.2.1 G emphasises the importance to the FSA of timely and accurate information. The extension of a firm's accounting period to more than 15 months may hinder the timely provision of relevant and important information to the FSA . This is because many due dates for reporting to the FSA are linked to firms'accounting reference dates. Indeed, for some categories of firm, the only reports required by the FSA have due dates for submission which are linked to the firm'saccounting reference date.If the extension of a firm's accounting period appears likely to impair the effectiveness of the FSA's supervisory work, the FSA may take action to ensure that it continues to receive the information it requires on a timely basis. This may include the use of any of the tools of supervision set out in SUP 1.4.5 G.
  • 21/06/2001

SUP 16.3.19

handbook-guidance
If more than one firm in a group intends to change its accounting reference date at the same time, a single notification may be given to the FSA , as described in SUP 15.7.8 G.
  • 21/06/2001

Underwriting agents: submission to the Society of Lloyd's

SUP 16.3.20

handbook-rule
(1) Paragraph (2) applies in relation to reports required under this chapter within the scope of any arrangements made by the FSA with the Society of Lloyd's under paragraph 6(2) of Schedule 1 to the Act.
(2) An underwriting agent must submit the reports in (1) to the Society of Lloyd's rather than to the FSA.
  • 21/06/2001

SUP 16.3.21

handbook-guidance
See SUP 15.7.13 G and SUP 15.7.14 G for guidance on arrangements in SUP 16.3.20 R.
  • 21/06/2001

Service of Notices Regulations

SUP 16.3.22

handbook-guidance
The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001 (SI 2001/1420) contain provisions relating to the service of documents on the FSA . They do not apply to reports required under SUP 16, because of the specific rules in this section.
  • 21/06/2001

Confidentiality and sharing of information

SUP 16.3.23

handbook-guidance
When the FSA receives a report which contains confidential information and whose submission is required under this chapter, it is obliged under Part XXIIIof the Act (Public Record, Disclosure of Information and Co-operation) to treat that information as confidential. (See SUP 2.2.4 G)
  • 21/06/2001

SUP 16.3.24

handbook-guidance
SUP 2.3.12 G states that the FSA may pass to other regulators information which it has in its possession. Such information includes information contained in reports submitted under this chapter. The FSA's disclosure of information to other regulators is subject to SUP 2.2.4 G(Confidentiality of information).
  • 21/06/2001

Reports from groups

SUP 16.3.25

handbook-guidance
If this chapter requires the submission of a report covering a group, a single report may be submitted, and so satisfy the requirements of all firms in the group. Such a report should contain the information required from all of them, meet all relevant due dates and indicate all the firms on whose behalf it is submitted; if necessary a separate covering sheet should list the firms on whose behalf a report is submitted. Nevertheless, the requirement to provide a report, and the responsibility for the report, remains with each firm in the group. However, reporting requirements that apply to a firm, by reason of the firm being a member of a financial conglomerate, are imposed on only one member of the financial conglomerate (see, for example, SUP 16.7.82 R ).
  • 01/01/2005

SUP 16.3.26

handbook-guidance
Examples of reports covering a group are:
(1) the compliance reports required from banks under SUP 16.6.4 R;
(2) annual controllers reports required under SUP 16.5.4 R ;
(3) annual close links reports required under SUP 16.5.4 R
(4) consolidated financial reports required from banks under SUP 16.7.7 R;
(5) consolidated reporting statements required from securities and futures firms under SUP 16.7.24 R.
  • 21/06/2001

SUP 16.4

Annual controllers report

  • 01/12/2004

Application

SUP 16.4.1

handbook-guidance
This section applies to every firm except those firms excluded from its operation by SUP 16.1.1 R and SUP 16.1.3 R.
  • 01/12/2004

SUP 16.4.2

handbook-guidance
This section may be of relevance to a directive friendly society:
(1) if it has 10 members or less;
(2) if it has a delegate voting system and has 10 delegates or less; or
(3) if it has 20 members or less and effects or carries out group insurance contracts where one person may exercise one vote on behalf of the members of a group and one vote in their private capacity; or
where a member or delegate, whether alone or with any associate, is entitled to exercise, or control the exercise of, 10% or more of the total voting power.
  • 21/06/2001

SUP 16.4.3

handbook-guidance
Requirements for notifications of a change in control can be found in SUP 11 (Controllers and close links).
  • 21/06/2001

Purpose

SUP 16.4.4

handbook-guidance
A firm and its controllers are required to notify certain changes in control (See SUP 11 (Controllers and close links)). The purpose of the rules and guidance in this section is:
(1) to ensure that, in addition to such notifications, the FSA receives regular and comprehensive information about the identities of all of the controllers of a firm, which is relevant to a firm's continuing to satisfy the threshold conditions (see COND 2.3) and to the protection of consumers;
(2) to implement certain requirements relating to annual reporting of controllers which must be imposed on firms under the Investment Services Directive, the Banking Consolidation Directive, the Third Life Directive and the Third Non-Life Directive; and
(3) to support the FSA's functions under Part XIIof the Act (Control over authorised persons) (see SUP 11 (Controllers and close links)).
  • 21/06/2001

Reporting requirement

SUP 16.4.5

handbook-rule
(1) A firm must submit a report to the FSA annually, containing the information in (3) or (4) (as applicable).
(2) A firm must submit the report in (1) to the FSA within four months of the firm'saccounting reference date.
(3) If a firm is not aware:
(a) that it has any controllers; or
(b) of any changes in the identity of its controllers since the submission of its previous report under (1); or
(c) of any changes in the percentage of shares or voting power in the firm held by any controllers (alone or with any associate) since the submission of its previous report;
then the report in (1) must confirm this.
(4) Unless (3) applies, the report in (1) must contain a list of all the controllers as at the firm'saccounting reference date of which it is aware and, for each such controller, state:
(a) its name;
(b) the percentage of voting power in the firm, or in the firm'sparent undertaking, which it is entitled to exercise or control the exercise of, whether alone or with any associate;
(c) the percentage of shares in the firm, or in the firm'sparent undertaking, which it holds, whether alone or with any associate;
(d) if the controller is a body corporate, its country of incorporation, address and registered number; and
(e) if the controller is an individual, his date and place of birth.
(4A) A firm that is a regulated entity must include in its report to the FSA under (1) whether any consolidation group of which it is a member is a third-country banking and investment group.
(4B) A firm does not have to give notice to the FSA under (4A) if it, or another member of the third-country banking and investment group, has already given notice to the FSA of the relevant fact.
(5) In this section, 'associate' and 'shares' have the meanings given in the definition of controller.
  • 01/01/2005

SUP 16.4.6

handbook-guidance
The information required by SUP 16.4.5 R(4) may be provided in the form of a group organisation chart.
  • 21/06/2001

SUP 16.4.7

handbook-guidance
If a group includes more than one firm, a single annual controllers report may be submitted, and so satisfy the requirements of all firms in the group. Such a report should contain the information required from all of them, meet all relevant due dates, indicate all the firms on whose behalf it is submitted and give their FSA firm reference numbers. Nevertheless, the requirement to provide a report, and the responsibility for the report, remain with each firm in the group.
  • 21/06/2001

SUP 16.4.8

handbook-guidance
A firm may submit a single report satisfying the requirements of its annual controllers report (SUP 16.4.5 R) and its annual close links report (SUP 16.5.4 R). Such a report should contain the information required on both controllers and close links.
  • 21/06/2001

SUP 16.4.9

handbook-guidance
Firms are reminded of the requirement in SUP 11.4.10 R to take reasonable steps to keep themselves informed about the identity of their controllers.
  • 21/06/2001

Exceptions: friendly societies and building societies

SUP 16.4.10

handbook-rule
If a firm is a friendly society or a building society, then it is required to submit a report under SUP 16.4.5 R only if it is aware that it has a controller.
  • 01/03/2003

SUP 16.4.11

handbook-rule
In SUP 16.4.5 R and SUP 16.4.10 R, a building society may regard a person as not being a controller if that person is exempt from the obligation to notify a change in control under The Financial Services and Markets Act 2000 (Controllers) (Exemption) (No.2) Order 2001 (SI 2001/3338) (see SUP 11.3.2A G (2)).
  • 01/10/2003

Exception: insurers

SUP 16.4.12

handbook-rule
An insurer need not submit a report under SUP 16.4.5 R to the extent that the information has already been provided to the FSA under IPRU(INS) 9.30R (Additional information on controllers).
  • 01/03/2003

SUP 16.5

Annual Close Links Reports

  • 01/12/2004

Application

SUP 16.5.1

handbook-guidance
This section applies to every firm except those firms excluded from its operation by SUP 16.1.1 R and SUP 16.1.3 R.
  • 01/12/2004

Purpose

SUP 16.5.2

handbook-guidance
A firm is required to notify the FSA of changes to its close links (see SUP 11.9). Threshold condition 3 (Close links) provides that, if a firm has close links with another person, the FSA must be satisfied that:
(1) those close links are not likely to prevent the FSA's effective supervision of the firm; and
(2) where it appears to the FSA that the person is subject to the laws, regulations or administrative provisions of a territory which is not an EEA State, neither the foreign provisions, nor any deficiency in their enforcement, would prevent the FSA's effective supervision of the firm.
  • 21/06/2001

SUP 16.5.3

handbook-guidance
The purposes of the rules and guidance in this section are:
(1) to ensure that, in addition to such notifications, the FSA receives regular and comprehensive information about the identities of all persons with whom a firm has close links, which is relevant to a firm's continuing to satisfy the threshold condition 3 (Close links) (see SUP 2.3) and to the protection of consumers; and
(2) to implement certain requirements relating to the provision of information on close links which must be imposed on firms under the 'Post-BCCI Directive'.
  • 21/06/2001

Report

SUP 16.5.4

handbook-rule
(1) A firm must submit a report to the FSA annually the information in (3) or (4) (as applicable).
(2) A firm must submit the report in (1) to the FSA within four months of the firm's accounting reference date.
(3) If a firm is not aware:
(a) that it has any close links; or
(b) of any material changes to the details in (4) (a) to (c) in respect of its close links since the submission of its previous report under (1);
then the report in (1) must confirm this.
(4) Unless (3) applies, the report in (1) must contain a list of all persons with whom the firm has close links as at the firm'saccounting reference date of which it is aware, and for each such person state:
(a) its name;
(b) the nature of the close links;
(c) if the close link is with a body corporate, its country of incorporation, address and registered number; and
(d) if the close link is with an individual, his date and place of birth.
  • 21/06/2001

SUP 16.5.5

handbook-guidance
The information required by SUP 16.5.4R(4) may be provided in the form of a group organisation chart.
  • 21/06/2001

SUP 16.5.6

handbook-guidance
If a group includes more than one firm, a single annual close links report may be submitted and so satisfy the requirements of all firms in the group. Such a report should contain the information required from all of them, meet all relevant due dates, indicate all the firms on whose behalf it is submitted and give their FSAfirm reference numbers. Nevertheless, the requirement to provide a report, and the responsibility for the report, remain with each firm in the group.
  • 21/06/2001

SUP 16.5.7

handbook-guidance
A firm may submit a single report satisfying the requirements of its annual controllers report (SUP 16.4.5 R) and its annual close links report (SUP 16.5.4 R). Such a report should contain the information required on both controllers and close links.
  • 21/06/2001

SUP 16.5.8

handbook-rule
If a firm is an unincorporated friendly society, then it is only required to submit a report under SUP 16.5.4 R if it is aware that it has close links.
  • 21/06/2001

SUP 16.6

Compliance reports

  • 01/12/2004

Application

SUP 16.6.1

handbook-guidance
The effect of SUP 16.1.1 R is that this section applies to every firm within a category listed in the left hand column of the table in SUP 16.6.2 G.
  • 21/06/2001

SUP 16.6.2

handbook-guidance

Applicable provisions of this section (see SUP 16.6.1 G)

  • 21/06/2001

Purpose

SUP 16.6.3

handbook-guidance
The FSA performs part of its supervision work by reviewing and analysing information about firms' records of compliance with the requirements and standards under the regulatory system. The type of report the FSA requires will vary, depending on the type of business a firm undertakes. The requirements in SUP 16.6 represent an interim approach to compliance reporting, based mainly on the reporting requirements, which previous regulators applied to firms. This information helps the FSA to determine whether a firm is complying with the requirements applicable to its business, and what procedures it is operating to ensure its compliance.
  • 21/06/2001

Banks

SUP 16.6.4

handbook-rule
A bank and an ELMI must submit compliance reports to the FSA in accordance with SUP 16.6.5 R.
  • 21/06/2001

SUP 16.6.5

handbook-rule

Compliance reports from a bank and an ELMI (see SUP 16.6.4 R)

  • 21/06/2001

Trustees of authorised unit trust schemes, depositaries of ICVCs, and OPS firms

SUP 16.6.6

handbook-rule
A firm within a category listed in the left-hand column of SUP 16.6.7 R must submit compliance reports in accordance with SUP 16.6.7 R.
  • 21/06/2001

SUP 16.6.7

handbook-rule

Compliance reports from trustees of AUTs, depositaries of ICVCs, and OPS firms (see SUP 16.6.6 R)

  • 21/06/2001

SUP 16.6.8

handbook-rule
(1) The report from a trustee of an AUT to the FSA must state, in relation to the manager of each AUT for which it is a trustee, the number of times during the quarter in which facts came to the firm's knowledge from which it appeared, or might have appeared, that the manager had failed (materially or otherwise) to:
(a) give correct instructions to the trustee to create or cancel units in the AUT when the manager should have done so, and the error:
(i) resulted in the creation of too few units or in the cancellation of too many units; and
(ii) was not corrected in accordance with the FSA's guidance as set out in COLL 6.2.12 or CIS App as the case may be;
(b) price units in the AUT in accordance with COLL 6.2 or CIS 4 as the case may be for single-priced AUTs and CIS 15 for dual-priced AUTs, where the pricing error was:
(i) greater than 0.5% of the price of a unit; or
(ii) less than 0.5% of the price of a unit, and the trustee did not consider the manager's controls to be adequate;
unless the failure was an isolated incident.
(2) The report from a depositary of an ICVC to the FSA must state, in relation to the authorised corporate director of each ICVC for which the firm is a depositary, the number of times during the quarter in which facts came to the firm's knowledge from which it appeared or might have appeared that the authorised corporate director had failed (materially or otherwise) to:
(a) arrange for the issue or cancellation of shares in the ICVC when the authorised corporate director should have done so, and the error:
(i) resulted in the creation of too few shares or in the cancellation of too many shares; and
(ii) was not corrected in accordance with the FSA's guidance as set out in COLL 6.2.12 or CIS App as the case may be;
(b) price shares in the ICVC in accordance with the provisions of COLL 6.3 or CIS 4 for ICVCs as the case may be, where the pricing error was:
(i) greater than 0.5% of the price of a share; or
(ii) less than 0.5% of the price of a share, and the depositary did not consider the authorised corporate director's controls to be adequate;
unless the failure was an isolated incident.
(3) An OPS firm must notify the FSA of any change in the date of commencement of the scheme year of an OPS or OPS collective investment scheme, in respect of which the firm is acting, not less than 15 business days before the date on which such a change is to become effective.
  • 01/04/2004

SUP 16.6.9

handbook-guidance
SUP 16 Annex 12 provides guidance on the completion of the report from a trustee of an AUT on a manager's failures as set out in SUP 16.6.8 R(1), and the report from a depositary of an ICVC on failures by the authorised corporate director as set out in SUP 16.6.8 R(2). This guidance includes suggested formats for the submission of the reports.
  • 21/06/2001

SUP 16.7

Financial reports

  • 01/12/2004

Application

SUP 16.7.1

handbook-guidance
The effect of SUP 16.1.1 R is that this section applies to every firm within a category listed in the left hand column of SUP 16.7.5 G.
  • 21/06/2001

SUP 16.7.2

handbook-guidance
(1) Reporting requirements for insurers, excluding friendly societies are set out in IPRU(INS).
(2) Reporting requirements for friendly societies are set out in IPRU(FSOC).
  • 21/06/2001

Purpose

SUP 16.7.3

handbook-guidance
Principle 4 requires firms to maintain adequate financial resources, and the Interim Prudential sourcebooks (or, in the case of firms with permission to carry on insurance mediation activity, mortgage mediation activity, or both, PRU ) set out the FSA's detailed capital adequacy requirements. By submitting regular financial reports, firms enable the FSA to monitor their compliance with Principle 4 and with the detailed requirements of the Interim Prudential sourcebooks or PRU , as the case may be. These reports also help the FSA to analyse firms' financial condition and performance and to understand their business. By means of further collation and review of the data which these reports provide, the FSA also uses the reports to identify developments across the financial services industry and its constituent sectors.
  • 01/04/2005

SUP 16.7.4

handbook-guidance
The requirements in this section differ according to firm categories, as different financial information is required to reflect different types of business. The requirements in SUP 16.7 represent an interim approach to financial reporting, based mainly on the reporting requirements which previous regulators applied to firms. Standard formats are used for reporting by each category of firm, to assist comparability between firms of the same category. Timely submission is important to ensure the FSA has up-to-date information.
  • 21/06/2001

SUP 16.7.5

handbook-guidance

Applicable rules and guidance on reports (see SUP 16.7.1 G)

  • 01/04/2005

SUP 16.7.6

handbook-guidance
For each firm category there is a table listing the reporting requirements. The tables state the name of each report, the frequency with which a firm must submit it, and the due date for submission. Detailed reporting forms and rules and guidance on their completion are contained in annexes to this chapter.
  • 21/06/2001

Compulsory electronic submission of certain reports to the FSA

SUP 16.7.6A

handbook-rule
A firm which is required by this section to submit an RMAR or an MLAR must provide the relevant data specified in SUP 16 Annex 18AR or SUP 16 Ann 19AR respectively by electronic means made available by the FSA.
  • 01/04/2005

SUP 16.7.6B

handbook-guidance
The RMAR is relevant to the reporting requirements of personal investment firms and firms carrying on insurance mediation activity, mortgage mediation activity or retail investment activity. The MLAR is relevant to firms carrying on mortgage lending or mortgage administration.
  • 01/04/2005

SUP 16.7.6C

handbook-rule
Where reference is made in SUP 16.7 to adequate information relating to:
(1) a personal investment firm; or
(2) the following activities:
(a) insurance mediation activity: or
(b) mortgage mediation activity; or
(c) retail investment activity;
this includes all sections of the RMAR in addition to those relating to financial reports, except where otherwise indicated.
  • 01/04/2005

SUP 16.7.6D

handbook-guidance
The RMAR comprises sections relating both to financial reporting and other sections (e.g. Training and Competence and COB data).
  • 01/04/2005

SUP 16.7.6E

handbook-guidance
Where SUP 16.7 requires a report containing adequate information on one or more of the following activities:
(1) insurance mediation activity;
(2) mortgage mediation activity;
(3) mortgage lending;
(4) mortgage administration;
(5) retail investment activity;
a firm should submit a report only if it carries on at least one of those activities.
  • 01/04/2005

Banks

SUP 16.7.7

handbook-rule
A UK bank must submit reports in accordance with SUP 16.7.8 R.
  • 21/06/2001

SUP 16.7.8

handbook-rule

Financial reports from a UK bank (see SUP 16.7.7 R)

  • 01/01/2005

SUP 16.7.9

handbook-rule
An EEA Bank, other than one with permission for cross border services only, must submit reports in accordance with SUP 16.7.10 R.
  • 21/06/2001

SUP 16.7.10

handbook-rule

Financial reports from an EEA Bank (see SUP 16.7.9 R)

  • 21/06/2001

SUP 16.7.11

handbook-rule
A bank established outside the EEA must submit reports in accordance with SUP 16.7.12 R.
  • 21/06/2001

SUP 16.7.12

handbook-rule

Financial reports from a bank established outside the EEA (see SUP 16.7.11 R)

  • 01/04/2005

Method of submission

SUP 16.7.13

handbook-rule
A bank, other than an EEA bank with permission for cross-border services only, must submit the reports described in SUP 16.7.8 R, SUP 16.7.10 R and SUP 16.7.12 R to the following:
(1) BSD3, LE3, LR, SLR1, B7 and M1 to: The Financial Statistics Division Domestic Banking Group (HO-4) Bank of England Threadneedle Street London EC2R 8AH;
(2) all other reports to the bank's usual supervisory contact at the address in SUP 16.3.10 G.
The Bank of England acts only as the agent of the FSA with regard to reports in (1).
  • 01/12/2004

SUP 16.7.14

handbook-guidance
Guidance notes for the completion of the reports are contained in SUP 16 Annex 2.
  • 21/06/2001

SUP 16.7.15

handbook-rule
A bank must submit the reports referred to in SUP 16.7.13 R(1) either:
(1) on paper by post, or by hand delivery to the Bank of England on any business day between 9am and 5pm; or
(2) in electronic format using the specifications for the Bank of England Reporting System and sent either:
(a) by the AT&T Global Network to one of the addresses specified in the above specification;
(b) by e-mail to mfsd_beers@bofe.co.uk; or
(c) on computer diskette but to paper reporting deadlines by post, or by hand delivery to the Bank of England on any business day between 9am and 5pm.
  • 01/07/2004

Building societies

SUP 16.7.16

handbook-rule
A building society must submit reports to the FSA in accordance with SUP 16.7.17 R.
  • 21/06/2001

SUP 16.7.17

handbook-rule

Financial reports from a building society (see SUP 16.7.16 R)

  • 01/04/2005

SUP 16.7.18

handbook-guidance
Guidance notes for the completion of the reports are contained in SUP 16 Annex 4.
  • 21/06/2001

Method of submission

SUP 16.7.19

handbook-rule
A building society must submit the reports in SUP 16.7.17 R (other than the "Analysis of interest rate risk gap") either:
(1) by means of the Remote Data Entry system supplied by the FSA (and previously by the Building Societies Commission); or, should this be inoperable,
(2) by post or fax to the address in SUP 16.3.10 G using:
(a) the corresponding forms available from the FSA's website; or
(b) its own version of the FSA's specified forms, provided that version is equivalent in terms of content and layout.
Notwithstanding a paper submission in accordance with (2),once the Remote Data Entry system is operable again, the reports must be submitted by its means.
  • 01/12/2004

Service companies

SUP 16.7.20

handbook-rule
A service company must submit reports to the FSA in accordance with SUP 16.7.21 R.
  • 21/06/2001

SUP 16.7.21

handbook-rule

Financial reports required from service companies (see SUP 16.7.20 R)

  • 21/06/2001

Securities and futures firms

SUP 16.7.22

handbook-rule
(1) SUP 16.7.23 R to SUP 16.7.30 R do not apply to a lead regulated firm.
(2) A lead regulated firm must submit a copy of its audited annual financial statements to the FSA within six months of the date at which they were prepared.
  • 21/06/2001

SUP 16.7.23

handbook-rule
For the purposes of SUP 16.7.24 R to SUP 16.7.34 G, the definitions of the following firm types provided in the glossaries in IPRU(INV) 3 and 10 apply:
(1) adviser;
(2) arranger;
(3) broad scope firm;
(4) category A;
(5) category B;
(6) category C;
(7) category D;
(8) local; and
(9) venture capital firm.
  • 21/06/2001

SUP 16.7.24

handbook-rule
A securities and futures firm which is a category A or B firm or a broad scope firm must submit reports to the FSA in accordance with SUP 16.7.25 R.
  • 21/06/2001

SUP 16.7.25

handbook-rule

Financial reports required from a securities and futures firm which is a category A or B firm or a broad scope firm (see SUP 16.7.24 R)

  • 01/01/2005

SUP 16.7.26

handbook-rule
A securities and futures firm which is a category C or D firm or an arranger or venture capital firm must submit reports to the FSA in accordance with SUP 16.7.27 R
  • 01/12/2004

SUP 16.7.27

handbook-rule

Financial reports from a securities and futures firm which is a category C or D firm or an arranger or venture capital firm (see SUP 16.7.26 R)

  • 01/01/2005

SUP 16.7.28

handbook-rule
A securities and futures firm which is an adviser or local, or a traded options market maker (as referred to in IPRU(INV) 3-60R (4)) must submit reports to the FSA in accordance with SUP 16.7.29 R.
  • 21/06/2001

SUP 16.7.29

handbook-rule

Financial reports from a securities and futures firm which is an adviser, local or a traded options market maker (see SUP 16.7.28 R)

  • 01/10/2003

SUP 16.7.30

handbook-rule
(1) A securities and futures firm which is an ISD investment firm, and which is a sole trader, or a partnership formed under the laws of England and Wales, must submit a solvency statement for the sole trader or each partner to the FSA every year.
(2) The due date for the submission of the solvency statement is three months after the firm'saccounting reference date.
  • 21/06/2001

SUP 16.7.31

handbook-rule
A securities and futures firm must submit the reports in SUP 16.7.25 R and SUP 16.7.27 Rin accordance with, and in the same format as:
(1) the forms contained in SUP 16 Ann 10 R, and as required by section 6 of that annex; and
(2) the form contained in SUP 16 Annex 20, and having regard to SUP 16 Annex 21.
  • 01/01/2005

SUP 16.7.32

handbook-guidance
Guidance notes for the completion of the reports are contained in SUP 16 Annex 11.
  • 21/06/2001

SUP 16.7.33

handbook-rule
(1) Any report in SUP 16.7.23 R to SUP 16.7.30 R submitted to the FSA by a securities and futures firm must be signed by two authorised signatories satisfying the requirements of SUP 16.7.33 R(2), except for:
(a) the audited accounts of a subsidiary of the firm and the firm's audited annual financial statements;
(b) other reports where the firm is a sole trader, when only one authorised signatory is required; and
(c) reports submitted in accordance with (3).
(2) An authorised signatory must be:
(a) for a body corporate, a director;
(b) for a partnership, a partner who is an approved person of the firm;
(c) for a sole trader, the proprietor.
(3) A firm must use the FiRSt 5.0 software package made available to firms by the FSA (and previously by the SFA) to submit the following reports:
(a) annual reporting statement;
(b) monthly reporting statement;
(c) quarterly reporting statement; and
(d) consolidated reporting statement.
(4) Reports in (3) must be submitted to the FSA in accordance with the methods permitted by FiRSt 5 software. All other reports in SUP 16.7.24 R to SUP 16.7.30 R must be sent to the address given in SUP 16.3.10 G.
  • 01/03/2005

SUP 16.7.34

handbook-guidance
The FSA expects the audited annual financial statements to be submitted together with the auditor's report required by SUP 3.9.4 R.
  • 21/06/2001

Investment management firms

SUP 16.7.35

handbook-rule
An investment management firm which is not one of the types of firm specified in SUP 16.7.37 R must submit reports to the FSA in accordance with SUP 16.7.36 R.
  • 01/12/2003

SUP 16.7.36

handbook-rule

Financial reports from an investment management firm (see SUP 16.7.35 R)

  • 01/01/2005

SUP 16.7.37

handbook-rule
SUP 16.7.36 R does not apply to an investment management firm which is:
(1) a lead regulated firm or an OPS firm (but if a firm falls into either of these categories, then it must submit a copy of its annual accounts in accordance with SUP 16.7.36 R);
(2) a local authority.
  • 21/06/2001

SUP 16.7.38

handbook-rule
An investment management firm must submit the reports in SUP 16.7.36 R in accordance with, and in the same format as:
(1) the forms contained in SUP 16 Annex 5 R, and as required by section 4 of that annex; and
(2) the forms contained in SUP 16 Annex 20, and having regard to SUP 16 Annex 21.
  • 01/01/2005

SUP 16.7.39

handbook-guidance
(1) The FSA expects the annual accounts to be submitted together with the auditor's report required by SUP 3.9.4 R.
(2) Notes giving guidance on the completion of the consolidated financial resources return are contained in SUP 16 Ann 17. The guidance in SUP 16.3.25 G (Reports from groups) is also relevant.
  • 01/12/2003

Reporting periods

SUP 16.7.40

handbook-rule
The period covered by:
(1) monthly financial returns may not exceed one month;
(2) quarterly financial returns may not exceed three months; and
(3) annual financial returns may not exceed twelve months.
  • 21/06/2001

Timely reporting

SUP 16.7.41

handbook-rule
An investment management firm must notify the FSA in writing as soon as it has reason to believe it will be unable to submit an annual, quarterly or monthly financial return by the dates specified in SUP 16.7.36 R. Such notice must specify why it cannot submit the report to the FSA on time and give the date by which it will submit the report to the FSA.
  • 21/06/2001

Authorised professional firms

SUP 16.7.54

handbook-rule
(1) An authorised professional firm must submit an annual questionnaire, contained in SUP 16 Annex 9, unless:
(a) its only regulated activities are one or more of:
(i) insurance mediation;
(ii) mortgage mediation;
(iii) retail investment;
(iv) mortgage lending;
(v) mortgage administration; or
(b) its "main business" as determined by IPRU(INV) 2.1.2 R (3) is advising on, or arranging deals in, packaged products, or managing investments for private customers;
in which case the authorised professional firm must complete the appropriate report specified in SUP 16.7.54A R.
(2) The due date for submission of the annual questionnaire is four months after the firm's accounting reference date.
(3) An authorised professional firm must also, where applicable, submit a report to the FSA in accordance with SUP 16.7.54A R.
  • 01/04/2005

SUP 16.7.54A

handbook-rule

Reports from an authorised professional firm (see SUP 16.7.54 R)

  • 01/04/2005

Society of Lloyd's and members' advisers

SUP 16.7.55

handbook-rule
The Society of Lloyd's must submit reports to the FSA in accordance with SUP 16.7.56 R.
  • 21/06/2001

SUP 16.7.56

handbook-rule

Financial reports from the Society of Lloyd's (see SUP 16.7.55 R)

  • 01/10/2003

SUP 16.7.57

handbook-rule
A members' adviser must submit reports to the FSA in accordance with SUP 16.7.58 R.
  • 21/06/2001

SUP 16.7.58

handbook-rule

Financial reports from a members' adviser (see SUP 16.7.57 R)

  • 21/06/2001

SUP 16.7.59

handbook-rule
(1) The Society of Lloyd's must prepare its reports in the format specified in LLD 15 , unless (2) applies.
(2) The Society must ensure that the annual syndicate returns are prepared in accordance with, and in the format set out in, Lloyd's Syndicate Accounting Byelaw (No. 18 of 1994) as amended and in force at commencement.
(3) A members' adviser must prepare its reports in accordance with, and in the format set out in, SUP 16 Annex 10 and as required by section 6 of that annex.
  • 21/06/2001

SUP 16.7.60

handbook-guidance
Guidance notes for the completion of the reports required from a members' adviser are contained in SUP 16 Annex 11.
  • 21/06/2001

SUP 16.7.61

handbook-guidance
The nature of the advisory business of a members' adviser whose permission is restricted to advising on syndicate participation at Lloyd's is akin to giving corporate finance advice, and the requirements are those applicable to firms giving corporate finance advice.
  • 21/06/2001

Credit Unions

SUP 16.7.62

handbook-rule
A credit union must submit reports to the FSA in accordance with, and in the same format as, the forms contained in SUP 16 Annex 14, as set out in SUP 16.7.63 R.
  • 02/07/2002

SUP 16.7.63

handbook-rule

Financial reports required from a credit union (see SUP 16.7.62 R)

  • 01/12/2004

SUP 16.7.63A

handbook-guidance
Guidance notes for the completion of the reports are contained in SUP 16 Annex 15.
  • 02/07/2002

SUP 16.7.63B

handbook-rule
The annual report required from a credit union by SUP 16.7.62 R and SUP 16.7.63 R must be made up for the same period as the audited accounts published by the credit union in accordance with section 3A of the Friendly and Industrial and Provident Societies Act 1968 (See CRED 14 Annex 1).
  • 02/07/2002

SUP 16.7.63C

handbook-guidance
CRED 14.10.10 R (2)(a) states that the audited accounts referred to in SUP 16.7.63B R are to be made up for the period beginning with the date of the credit union's registration or with the date to which the credit union's last annual accounts were made up, whichever is the later, and ending on the credit union's most recent financial year end.
  • 02/07/2002

Electronic money institutions

SUP 16.7.64

handbook-rule
(1) SUP 16.7.65 R and SUP 16.7.66 R do not apply to a lead regulated firm.
(2) A lead regulated firm must submit a copy of its audited annual financial statements to the FSA within six months of the date at which they were prepared.
  • 21/06/2001

SUP 16.7.65

handbook-rule
An ELMI must submit reports in accordance with SUP 16.7.66 R
  • 21/06/2001

SUP 16.7.66

handbook-rule

Financial reports from an ELMI (see SUP 16.7.65 R)

  • 01/04/2005

UCITS Management Companies

SUP 16.7.67

handbook-rule
A UCITS management company must submit reports to the FSA in accordance with SUP 16.7.68 R.
  • 13/02/2004

SUP 16.7.68

handbook-rule

Financial reports from a UCITS management company (see SUP 16.7.67 R)

  • 01/01/2005

SUP 16.7.69

handbook-rule
A UCITS management company must submit the reports in SUP 16.7.68 R in accordance with, and in the same format as:
(1) the forms contained in SUP 16 Annex 16, and as required by section 3 of that annex; and
(2) the form contained in SUP 16 Annex 20, and having regard to SUP 16 Annex 21.
  • 01/01/2005

SUP 16.7.70

handbook-guidance
The FSA expects the annual accounts to be submitted together with the auditor's report required by SUP 3.9.4 R.
  • 13/02/2004

Reporting periods

SUP 16.7.71

handbook-rule
The period covered by:
(1) quarterly financial returns may not exceed three months; and
(2) annual financial returns may not exceed twelve months.
  • 13/02/2004

Timely reporting

SUP 16.7.72

handbook-rule
A UCITS management company must notify the FSA in writing as soon as it has reason to believe it will be unable to submit an annual or quarterly financial return by the dates specified in SUP 16.7.68 R. Such notice must specify why it cannot submit the report to the FSA on time and give the date by which it will submit the report to the FSA.
  • 13/02/2004

A firm not subject to other reporting requirements in SUP 16.7

SUP 16.7.76

handbook-rule
A firm not subject to other reporting requirements in SUP 16.7.1 G - SUP 16.7.75 R (nor to reporting requirements in IPRU(INS) or IPRU(FSOC)):
(1) with permission to carry on one or more of:
(a) insurance mediation activity; or
(b) mortgage mediation activity; or
(c) mortgage lending; or
(d) mortgage administration; or
(2) which is a personal investment firm ;
must submit reports to the FSA in accordance with SUP 16.7.77 R.
  • 01/04/2005

SUP 16.7.77

handbook-rule

Reports from a firm not subject to other reporting requirements in SUP 16.7.1 G - SUP 16.7.75 R

  • 01/06/2005

SUP 16.7.78

handbook-rule
Where a mortgage lender or mortgage intermediary establishes a special purpose vehicle, it must ensure that any report which the mortgage lender or mortgage intermediary makes in accordance with SUP 16.7.76 R takes account of the activities of the special purpose vehicle as if those activities were the activities of the mortgage lender itself.
  • 01/04/2005

SUP 16.7.79

handbook-rule
An incoming EEA firm which in the United Kingdom carries on only cross border services and is not subject to other reporting requirements in SUP 16.7 with permission to carry on:
(1) insurance mediation activity; or
(2) mortgage mediation activity; or
(3) mortgage lending; or
(4) mortgage administration; or
(5) retail investment activity;
is subject to the requirements of SUP 16.10 only, and no requirements in respect of the RMAR or MLAR.
  • 01/04/2005

SUP 16.7.80

handbook-rule
An incoming EEA firm with a branch in the United Kingdom, not subject to other reporting requirements in SUP 16.7, with permission to carry on:
(1) insurance mediation activity; or
(2) retail investment activity;
is required to provide such information relating to those activities as is specified in SUP 16 Annex 18BG and SUP 16 Annex 19BG.
  • 01/04/2005

SUP 16.7.81

handbook-guidance
SUP 16.7.80 R is relevant, for example, to an insurance broker registered in another EEA State pursuant to the IMD , which exercises its EEA right to establish a branch in the United Kingdom and is not subject to other reporting requirements in SUP 16.7.
  • 01/04/2005

Financial conglomerates

SUP 16.7.82

handbook-rule
(1) A firm that is a member of a financial conglomerate must submit financial reports to the FSA in accordance with the table in SUP 16.7.83 R if:
(a) it is at the head of an FSA regulated EEA financial conglomerate; or
(b) its Part IV permission contains a relevant requirement.
(2) In (1)(b), a relevant requirement is one which:
(a) applies SUP 16.7.83 R to the firm; or
(b) applies SUP 16.7.83 R to the firm unless the mixed financial holding company of the financial conglomerate to which the firm belongs submits the report required under this rule (as if the rule applied to it).
  • 01/01/2005

SUP 16.7.83

handbook-rule

Financial reports from a member of a financial conglomerate (see SUP 16.7.82 R)

  • 01/01/2005

SUP 16.8

Persistency reports from insurers and data reports on stakeholder pensions

  • 01/12/2004

Application

SUP 16.8.1

handbook-guidance
The effect of SUP 16.1.1 R is that this section applies to:
(1) every insurer with permission to effect or carry out life policies, unless it is a non-directive friendly society; and
(2) every firm with permission to establish, operate or wind up a stakeholder pension scheme.
  • 21/06/2001

Purpose

SUP 16.8.2

handbook-guidance
The purpose of this section is to enable information on the persistency of life policies and data on stakeholder pensions to be prepared and provided to the FSA in a standard format. This information is used in the monitoring of firms both individually and collectively.
  • 21/06/2001

Requirement to submit persistency and data reports

SUP 16.8.3

handbook-rule
(1) An insurer with permission to effect or carry out life policies must submit to the FSA a persistency report in respect of life policies by 30 April each year in accordance with this section.
(2) A firm with permission to establish, operate or wind up a stakeholder pension scheme must submit to the FSA :
(a) a data report on stakeholder pensions by 30 April each year prepared in accordance with this section; and
(b) two extra data reports on stakeholder pensions prepared in accordance with this section as follows:
(i) by 31 October 2002, of the number effected in the period to 30 June 2001 and the number of those still in force 12 months after the contract was effected;
(ii) by 31 January 2003, of the number effected in the period 1 July 2001 to 30 September 2001 and the number of those still in force 12 months after the contract was effected.
  • 21/06/2001

Interpretation of this section

SUP 16.8.4

handbook-rule
In this section, and Forms 1R(2) to (4) in SUP 16 Annex 6R:
(1) '12 month report' means the part of a persistency report or data report reporting on life policies or stakeholder pensions effected in Y-2, '24 month report' means the part of a persistency report or data report reporting on life policies or stakeholder pensions effected in Y-3, and so on;
(2) 'CC' means the number of life policies or stakeholder pensions which:
(a) were effected during the period to which the calculation relates; and
(b) are reported on in the persistency report or data report (see SUP 16.8.8 R to SUP 16.8.15 R);
(3) 'CF' means the number of life policies or stakeholder pensions within 'CC' which are treated as in force at the end of Y-1 or, for a report under SUP 16.8.3 R (2) (b), the relevant 12 month period (see SUP 16.8.16 R to SUP 16.8.18 R);
(4) 'contract anniversary' means the anniversary of the date on which the life policy or stakeholder pension was effected falling within Y-1;
(5) 'data report' means a report in respect of stakeholder pensions complying with SUP 16.8.19 R to SUP 16.8.21 R;
(6) Forms 1R(1), 1R(2), 1R(3) and 1R(4) mean the forms in SUP 16 Annex 6;
(7) 'group personal pension policy' means a life policy which is not a separate pension scheme, effected under a collecting arrangement made for the employees of a particular employer to participate in a personal pension arrangement on a group basis;
(8) [deleted]
(9) 'mortgage endowment' means an endowment assurance effected or believed to be effected for the purposes of paying off a loan on land;
(10) 'new', in relation to a stakeholder pension, has the meaning given in SUP 16.8.11 R (2);
(11) 'ordinary assurance policy' means a life policy which is not an industrial assurance policy;
(12) 'other life assurance' means a life policy other than a pension policy, endowment assurance or whole life assurance;
(13) 'other pension policy' means a pension policy other than a personal pension policy;
(14) 'persistency rate' means a rate calculated using this formula:CF x 100/CC(see the example in SUP 16.8.5 G);
(15) 'persistency report' means a report in respect of life policies complying with SUP 16.8.19 R to SUP 16.8.21 R;
(16) 'regular premium life policy' means a life policy where there is (or could be, or has been) a commitment by the policyholder to make a regular stream of contributions (for example by means of a direct debit mandate);
(17) 'regular premium stakeholder pension' means a stakeholder pension where there is (or could be, or has been) a commitment by the policyholder to make a regular stream of contributions;
(18) 'single premium life policy' means a life policy that is not a regular premium life policy, except that a recurrent single premium life policy must be treated as a regular premium life policy;
(19) 'single premium stakeholder pension' means a stakeholder pension which is not a regular premium stakeholder pension, except that a recurrent single premium stakeholder pension must be treated as a regular premium stakeholder pension;
(20) 'stakeholder pension' means an individual's rights under a stakeholder pension scheme;
(21) 'substitute', in relation to stakeholder pension, has the meaning given in SUP 16.8.11 R (2);
(22) 'Y' means the year in which the report must be submitted, 'Y-1' means the preceding year, 'Y-2' means the next earlier year and so on;
(23) 'year' means calendar year, unless SUP 16.8.7 R applies.
  • 06/04/2005

SUP 16.8.5

handbook-guidance

Example of calculation of persistency rate for life policies that commenced during 1996 (see SUP 16.8.3 R)

  • 21/06/2001

SUP 16.8.6

handbook-guidance
Firms are reminded that annuity contracts other than deferred annuity contracts are not within the definition of 'life policy'.
  • 21/06/2001

SUP 16.8.7

handbook-rule
In relation to a persistency report, a firm may treat a 12-month period ending between 1 October and 31 March as a 'year' for the purposes of this section and Forms 1R(1) to (3):
(1) if the firm's financial year does not end on 31 December; or
(2) for industrial assurance policy business;
provided that the use of an alternative period is disclosed in the persistency report.
  • 21/06/2001

Life policies and stakeholder pension to be reported on in the persistency or data reports

SUP 16.8.8

handbook-rule
A persistency report or data report must report on a life policy or stakeholder pension if:
(1) it is not of a type listed in SUP 16.8.13 R or SUP 16.8.14 R;
(2) it was effected by:
(a) the firm submitting the report; or
(b) an unauthorised member of the group of the firm submitting the report and in circumstances in which that firm was responsible for the promotion of that life policy or stakeholder pension; or
(c) another firm, but is being carried out by the firm submitting the report; and
(3) the person who sold it or who was responsible for its promotion was, in so doing, subject to rules in COB or (before commencement) conduct of business rules made by a previous regulator.
  • 21/06/2001

SUP 16.8.9

handbook-guidance
Life policies and stakeholder pensions falling within SUP 16.8.8 R (2) (c) are those which have been transferred from another firm, for example under an insurance business transfer scheme under Part VIIof the Act (Control of Business Transfers).
  • 21/06/2001

SUP 16.8.10

handbook-rule
Life policies falling within SUP 16.8.8 R, which were sold subject to the conduct of business rules of a previous regulator, need to be reported only if they were required to be reported on by the rules of the previous regulator of the firm submitting the report.
  • 21/06/2001

SUP 16.8.11

handbook-rule
(1) A life policy or stakeholder pension which was issued in substitution for a similar contract may be treated as being effected on the inception date of the previous life policy or stakeholder pension, provided that the firm is satisfied that no loss to the policyholder is attributable to the substitution;
(2) A stakeholder pension which is treated as in (1) is a "substitute" stakeholder pension. A "new" stakeholder pension is any other stakeholder pension.
  • 21/06/2001

SUP 16.8.12

handbook-guidance
Examples of loss to the policyholder under SUP 16.8.11 R are losses resulting from higher charges and more restrictive benefits and options.
  • 01/10/2003

SUP 16.8.13

handbook-rule
A persistency or data report must not report on any of the following:
(1) a life policy or stakeholder pension that was cancelled from inception whether or not this was as a result of service of a notice under COB 6.7 (Cancellation and withdrawal);
(2) an appropriate personal pension scheme to which contributions are made only by the Department of Social Security;
(3) a life policy (excluding income withdrawal) or stakeholder pension which has terminated as a result of death, critical illness, retirement, maturity or other completion of the contract term;
(4) income withdrawals that have ceased as a result of the death of the policyholder;
(5) in the case of a persistency report only, a life policy which is a stakeholder pension;
(6) a life policy purchased by the trustees of an occupational pension scheme which is a defined benefits pension scheme;
(7) a life policy purchased by the trustees of an executive money purchase occupational pension scheme.
  • 21/06/2001

SUP 16.8.14

handbook-rule
A persistency report required by SUP 16.8.3 R (1) need not report on a life policy if the number of life policies on substantially the same terms effected by the relevant firm (or member of the firm'sgroup) in the relevant year did not exceed the higher of fifty and 1% of the total reportable life policies effected by the person in that year.
  • 21/06/2001

SUP 16.8.15

handbook-rule
If the term of an endowment assurance is less than five years, the life policy must only be included in a persistency report in respect of years up to and including the anniversary prior to maturity.
  • 21/06/2001

Life policies and stakeholder pensions to be treated as in force

SUP 16.8.16

handbook-rule
Subject to SUP 16.8.17 R and SUP 16.8.18 R, a life policy or stakeholder pension must be treated as in force at the end of Y-1 (that is, included in CF) if and only if:
(1) in the case of a regular premium life policy:
(a) in the case of an industrial assurance policy on which the premiums are paid at intervals of four weeks, the premium has been paid in respect of the four-week period in which the policy anniversary falls; or
(b) in any other case, the premium has been paid in respect of the month in which the policy anniversary falls;
(2) in the case of a single premium life policy, the policy has not been surrendered as at the policy anniversary;
(3) in the case of a regular premium stakeholder pension:
(a) for a report required by SUP 16.8.3 R (2) (a), the premium has been paid in respect of the month in which the contract anniversary falls;
(b) for a report required by SUP 16.8.3 R (2) (b), the premium has been paid in respect of the month 12 months after the contract was effected;
(4) in the case of a single premium stakeholder pension:
(a) for a report required by SUP 16.8.3 R (2)(a), the contract has not been surrendered as at the contract anniversary; or
(b) for a report required by SUP 16.8.3 R (2)(b), the contract has not been surrendered as at the end of the 12 month period.
  • 21/06/2001

SUP 16.8.17

handbook-rule
A cluster life policy must be reported as a single life policy and must be treated as in force (that is included in CF) even if some of the constituent life policies have been terminated.
  • 21/06/2001

SUP 16.8.18

handbook-rule
An income withdrawal that has terminated other than by death of the policyholder must be treated as not in force at the end of Y-1 (that is, not included in CF).
  • 21/06/2001

Contents of the persistency or data report

SUP 16.8.19

handbook-rule
(1) A persistency report on life policies must be a report in the format of Forms 1R(1), (2) and (3).
(2) A data report on stakeholder pensions must be a report in the format of Form 1R(4).
(3) A persistency and a data report must include:
(a) for a report required by SUP 16.8.3 R (1) or (2) (a), a separate copy of each Form reporting on life policies or stakeholder pensions effected during each of Y-2, Y-3, Y-4, Y-5;
(b) for a persistency report, a separate copy of Forms IR(1) and IR(2) reporting on:
(i) regular premium life policies and single premium life policies; and
(ii) life policies classified as ordinary assurance policies and industrial assurance policies .
  • 21/06/2001

SUP 16.8.20

handbook-rule
If, in relation to any Form, a firm has no life policies or stakeholder pensions to report on in a copy of that Form, the firm need not submit that copy provided that it confirms in writing to the FSA , as part of the persistency or data report, that it is not doing so and the reason for not doing so.
  • 21/06/2001

SUP 16.8.21

handbook-rule
The firm must, if a persistency report reports on;
(1) an endowment assurance with a term of five years or less:
(a) report on such a policy in Form 1R(2); and
(b) not report on such a policy in Form 1R(1);
(2) a group personal pension policy, include the policy as a personal pension policy in Forms 1R(1) and 1R(3);
(3) a mortgage endowment, also include the policy as an endowment assurance in Forms 1R(1) and 1R(3);
(4) an income withdrawal, not include the policy under any other relevant category in Forms 1R(1) and 1R(3).
  • 06/04/2005

SUP 16.8.22

handbook-guidance
(1) Under SUP 16.8.16 R, a life policy must be treated as not in force if premiums have not been paid at the relevant date. Form 1R(3) seeks additional information on the number of policies treated as not in force which are subject to genuine contribution holidays.
(2) A firm should treat a life policy as 'subject to a contribution holiday' if:
(a) the terms of the policy allow the policyholder to take a contribution holiday;
(b) the policyholder has opted to take a contribution holiday in accordance with those terms;
(c) the policyholder has clearly stated his intention to resume payments; and
(d) at the end of Y-1, not more than 12 months have elapsed from the date that premiums ceased to be paid.
(3) In addition to the stakeholder data reports showing all contracts, firms are requested, where separate data is available, to submit additional reports showing just those contracts where decision trees were used in accordance with COB 6.4.21.
  • 21/06/2001

Records

SUP 16.8.23

handbook-rule
A firm must make and retain such records as will enable it to:
(1) monitor regularly the persistency of life policies and stakeholder pensions effected through each of its representatives; and
(2) make persistency reports or data reports to the FSA in accordance with SUP 16.8.3R.
  • 21/06/2001

SUP 16.8.24

handbook-guidance
In order to comply with SUP 16.8.23 R, a firm will as a minimum need to make and retain separate records for:
(1) life policies and stakeholder pensions originally promoted:
(a) by representatives; or
(b) by independent intermediaries; or
(c) through the firm's own direct offer financial promotions; or
(d) as adopted packaged products;
(2) life policies and stakeholder pensions not within (1), including those effected as execution-only transactions,for inclusion in the relevant form under 'Otherwise';
(3) life policies and stakeholder pensions written assuming the payment of:
(a) regular premiums;
(b) a single premium;
(4) life policies written as:
(a) ordinary assurance policies;
(b) industrial assurance policies;
(5) the categories of life policies and stakeholder pensions referred to in Forms 1R(1) to (4).
  • 30/09/2003

SUP 16.9

Appointed representatives annual report

  • 01/12/2004

Application

SUP 16.9.1

handbook-guidance
  • 30/09/2003

Purpose

SUP 16.9.2

handbook-guidance
The purpose of the rules and guidance in this section is to ensure that, in addition to the notifications made under SUP 12.7 (Appointed representatives; notification requirements), the FSA receives regular and comprehensive information about the appointed representatives engaged by a firm, so that the FSA is in a better position to pursue the regulatory objective of the protection of consumers.
  • 01/11/2004

SUP 16.9.3

handbook-rule
(1) A firm must:
(a) submit a report to the FSA annually, in the form of an amended copy of the relevant extract from the FSA Register, containing the information in (2);
(b) submit the report in (1) to the FSA within four months of the firm's accounting reference date.
(2) The report in (1) must contain a list of all the current appointed representatives of the firm as at the firm's accounting reference date .
(3) The report in (1) is not required if:
(a) the firm has no appointed representatives as at the firm's accounting reference date; and
(b) this is reflected in the relevant extract from the FSA Register.
  • 30/09/2003

SUP 16.9.4

handbook-guidance
The FSA Register is maintained under section 347 of the Act (The record of authorised persons, etc.) and may be viewed at the FSA's website at www.fsa.gov.uk/register/.
  • 01/11/2004

SUP 16.9.6

handbook-guidance
If a group includes more than one firm, a single annual appointed representatives report may be submitted on behalf of all firms in the group. Such a report should contain the information required from all the firms, meet all relevant due dates, indicate all the firms on whose behalf it is submitted and give their FSA firm reference numbers. The requirement to provide a report, and the responsibility for the report remains with each firm in the group.
  • 21/06/2001

SUP 16.10

Verification of standing data

  • 01/04/2005

Application

SUP 16.10.1

handbook-guidance
The effect of SUP 16.1.1 R is that this section applies to every firm except:
(1) an ICVC; or
(2) a UCITS qualifier; or
(3) a credit union.
  • 01/04/2005

Purpose

SUP 16.10.2

handbook-guidance
Standing data is used by the FSA :
(1) to ensure that a firm is presented with the correct regulatory return when it seeks to report electronically;
(2) in order to communicate with a firm;
(3) as the basis for some sections of the FSA Register; and
(4) in order to carry out thematic analysis across sectors and groups of firms.
  • 01/04/2005

SUP 16.10.3

handbook-guidance
In view of the importance attached to standing data, and the consequences which may result if it is wrong, this section provides the framework for a firm to check and correct it.
  • 01/04/2005

Requirement to check the accuracy of standing data and to report changes to the FSA

SUP 16.10.4

handbook-rule
(1) Within 30 business days of its accounting reference date, a firm must check the accuracy of its standing data through the relevant section of the FSA website.
(2)
(3) If any standing data is incorrect, the firm must give the corrected standing data to the FSA, using the appropriate form submitted in accordance with instructions on that form.
  • 01/04/2005

SUP 16.10.5

handbook-guidance
The standing data is made available to the firm when the firm logs into the appropriate section of the FSA website. The firm should check the standing data and send any corrections to the FSA . The FSA's preferred method of receiving corrections to standing data is by the online forms available at the FSA's website.
  • 01/04/2005

SUP 16.10.6

handbook-guidance
A firm may check, and submit corrections to, its standing data more frequently than annually.
  • 01/04/2005

SUP 16.10.7

handbook-guidance
For the purpose of SUP 16.10.4R (3), the appropriate form will be determined by the standing data to be corrected. Appropriate forms will include (but are not limited to) the form in SUP 15 Ann 2 (standing data form) and the form in SUP 15 Ann 3 (notification form).
  • 01/04/2005

SUP 16.11

Product Sales Data Reporting

  • 01/04/2005

Application

SUP 16.11.1

handbook-rule
This section applies to a firm which is a mortgage lender; or in respect of sales to a private customer or a retail customer :
(1) an insurer; or
(2) the operator ofa regulated collective investment scheme,or an investment trust savings scheme; or
(3) a person who issues or manages the relevant assets of the issuer of a structured capital-at-risk product,
unless the firm is a managing agent.
  • 01/04/2005

Purpose

SUP 16.11.2

handbook-guidance
(1) The purpose of this section is to set out the requirements for firms in the retail mortgage, investment, and pure protection contract markets specified in SUP 16.11.1 R to report individual product sales data to the FSA . This requirement applies whether the regulated activity has been carried out by the firm, or through an intermediary which has dealt directly with the firm.
(2) The purpose of collecting this data is to assist the FSA in the ongoing supervision of firms engaged in retail activities and to enable the FSA to gain a wider understanding of market trends in the interests of protecting consumers.
  • 01/04/2005

Reporting requirement

SUP 16.11.3

handbook-rule
(1) A firm must submit a report (the 'data report') containing the information required by SUP 16.11.5 R quarterly, within 20 business days of the end of the quarter, unless (3) applies.
(2) The reporting periods are the four calendar quarters of each year beginning on 1 January.
(3) A firm need not submit a data report if no relevant sales have occurred in the quarter.
  • 01/04/2005

SUP 16.11.4

handbook-guidance
(1) A firm may submit a data report more frequently than quarterlyif it wishes.
(2) If it is easier and more practical for a firm to submit additional data relating to products other than those specified in SUP 16.11.5 R, it may submit that additional data to the FSA in a data report.
  • 01/04/2005

Content of the report

SUP 16.11.5

handbook-rule
The data report must contain sales data in respect of the following products:
(1) retail investments;
(2) pure protection contracts; and
(3) regulated mortgage contracts (but not further advances).
  • 01/04/2005

SUP 16.11.6

handbook-guidance
Guidance on the type of products covered by SUP 16.11.5 R is contained in SUP 16 Annex 20G.
  • 01/04/2005

SUP 16.11.7

handbook-rule
The data report must comply with the provisions of SUP 16 Annex 21R.
  • 01/04/2005

SUP 16.11.8

handbook-rule
The data report must relate both to transactions undertaken by the firm and to transactions undertaken by an intermediary which has dealt directly with the customer on the firm 's behalf.
  • 01/04/2005

SUP 16.11.8A

handbook-guidance
Where the operator of a collective investment scheme receives business from a firm which operates a nominee account, the data report in respect of those transactions submitted by the operator should treat those transactions as transactions undertaken by the operator with the firm.
  • 01/04/2005

SUP 16.11.9

handbook-rule
A firm must provide thedata report to the FSA electronically in a standard format provided by the FSA .
  • 01/04/2005

SUP 16.11.10

handbook-guidance
A data report will have been provided to the FSA in accordance with SUP 16.11.9 R only if all mandatory data reporting fields (as set out in SUP 16 Annex 21R) have been completed correctly and the report has been accepted by the relevant FSA reporting system.
  • 01/04/2005

Use of reporting agents

SUP 16.11.11

handbook-rule
(1) A firm may appoint another person to provide the data report on the firm's behalf if the firm has informed the FSA of that appointment in writing.
(2) Where (1) applies, the firm must ensure that the data report complies with the requirements of SUP 16.11 and identifies the originator of the transaction.
  • 01/04/2005

SUP 16 Annex 1

Banks' reporting forms

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Banks' reporting forms - Forms/sup/sup_chapter16_annex1r.pdf
  • 01/07/2004

SUP 16 Annex 2

Guidance notes on form 1R

  • 01/12/2004

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Guidance notes on completion of banks' reporting forms (including validations) - Forms/sup/sup_chapter16_annex2g.pdf
  • 01/07/2005

SUP 16 Annex 3

Building societies' reporting forms

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Standing Data - Forms/sup/standing_data.pdf
  • 18/04/2002

SUP 16 Annex 4

Guidance notes on form 3R

  • 01/12/2004

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Building Society: Monthly Statement - Forms/sup/sup_chapter16_annex4g.pdf
  • 21/04/2005

SUP 16 Annex 5

Investment Management firms' reporting forms and requirements applying to their completion

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Investment management firms' reporting forms and requirements applying to their completion - Forms/sup/sup_chapter16_annex5r.pdf
  • 18/04/2002

SUP 16 Annex 6R

Persistency report

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:
Persistency Report - Forms/sup/sup_chapter16_annex6r.pdf
  • 21/06/2001

SUP 16 Annex 9R

Annual questionnaire for authorised professional firms

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:
Annual Questionnaire for Authorised Professional Firms - Forms/sup/sup_chapter16_annex9r.pdf
  • 18/04/2002

SUP 16 Annex 10

Securities and Futures firms' reporting forms and requirements applying to their completion

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Securities and Futures Firms' Reporting Forms and Requirements Applying to their Completion - Forms/sup/sup_chapter16_annex10r.pdf
  • 18/04/2002

SUP 16 Annex 11

Guidance Notes on Completion of Securities and Futures Firms Reporting Forms

  • 01/12/2004

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Guidance notes on completion of securities and futures firms' reporting forms - Forms/sup/sup_chapter16_annex11g.pdf
  • 01/04/2004

SUP 16 Annex 12

Reports from trustees of AUTs and depositaries of ICVCs

  • 01/12/2004

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:
Reports from trustees of AUTs and depositaries - Forms/sup/sup_chapter16_annex12g.pdf
  • 18/04/2002

SUP 16 Annex 13

Return cover sheet

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Return Cover Sheet - Forms/sup/sup_chapter16_annex13r.pdf
  • 18/04/2002

SUP 16 Annex 14

Quarterly and annual returns for Credit Unions

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms.

Quarterly return - Forms/sup/sup_chapter16_annex14r.pdf
  • 18/04/2002

SUP 16 Annex 15

Notes on completing the quarterly and annual returns for Credit Unions

  • 01/12/2004

handbook-guidance
This annex consists only of one or more forms.

Notes on completing the Quarterly Return (CQ) for credit unions - Forms/sup/sup_chapter16_annex15g.pdf
  • 01/12/2003

SUP 16 Annex 16

UCITS management companies reporting forms and requirements applying to their completion

  • 01/12/2004

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

UCITS management companies reporting forms and requirements applying to their completion - Forms/sup/sup_chapter16_annex16r.pdf
  • 13/02/2004

SUP 16 Annex 16A

Standing data (See SUP 16.10.4 R)

  • 01/04/2005

SUP 16 Annex 16A.1

handbook-rule
A: Communications with a firm

1. Name of the firm
2. Trading name(s) of the firm
3.
4. Registered office
5. Principal place of business
6. Website address
7. Telephone number
8. The name and email address of the principal compliance contact

B: Information about a firm on the FSA Register
9. Regulated activities for which a firm has permission
10. Whether the firm holds client money
11.

C: Other information about a firm
12.
13.
14. Name and address of firm's auditor
15. Legal status
16. Accounting reference date
  • 01/04/2005

SUP 16 Annex 17

Consolidated financial resources return for investment management firms

  • 01/04/2005

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Consolidated Financial Resources Return for Investment Management Firms - Forms/sup/sup_chapter16_annex17g.pdf
  • 01/04/2005

SUP 16 Annex 18

Annex 18

  • 01/12/2004

SUP 16 Annex 18A

Retail Mediation Activities Return ('RMAR')

  • 01/04/2005

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Retail Mediation Activities Return ('RMAR') - SUP Chapter 16 Annex 18A R
  • 01/06/2005

SUP 16 Annex 18B

Notes for Completion of the Retail Mediation Activities Return ('RMAR')

  • 01/04/2005

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Notes for Completion of the Retail Mediation Activities Return ('RMAR') - Forms/sup/sup_chapter16_annex18bg.pdf
  • 01/06/2005

SUP 16 Annex 19A

Mortgage Lending and Administration Return ('MLAR')

  • 01/04/2005

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Mortgage Lending and Administration Return ('MLAR') - Sup Chapter16 Annex19A R
  • 01/04/2005

SUP 16 Annex 19B

Notes for Completion of the Mortgage Lending and Administration Return ('MLAR')

  • 01/04/2005

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Notes for Completion of the Mortgage Lending and Administration Return ('MLAR') - Sup Chapter 16 Annex 19B G
  • 01/06/2005

SUP 16 Annex 20

Products covered by the reporting requirement in SUP 16.11

  • 01/04/2005

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Products covered by the reporting requirement in SUP 16.11 - Sup Chapter 16 Annex 20 G
  • 01/04/2005

SUP 16 Annex 21

Reporting Fields

  • 01/04/2005

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Reporting Fields - Sup Chapter 16 Annex 21 R
  • 01/04/2005

SUP 16 Annex 22

Consolidated supervision return for investment firms

  • 01/01/2005

handbook-rule
This annex consists only of one or more forms. Forms are to be found through the following address:

Consolidated supervision return for investment firms - Forms/sup/sup_chapter16_annex22r.pdf
  • 01/01/2005

SUP 16 Annex 23

Consolidated supervision return for investment firms (Notes)

  • 01/01/2005

handbook-guidance
This annex consists only of one or more forms. Forms are to be found through the following address:

Consolidated supervision return for investment firms (Notes) - Forms/sup/sup_chapter16_annex23g.pdf
  • 01/01/2005