Application

(1) an incoming EEA firm2 with permission for cross border services only;

(2) an oil market participant that is not subject to the requirements of IPRU(INV) Chapter 32;

(3) an authorised professional firm (other than one that must comply with IPRU(INV) 3, 53 or 13 in accordance with IPRU(INV) 2.1.4R, where SUP 16.12.4 R will apply in respect of the business the firm undertakes)4, which must comply with SUP 16.12.30 R and2 SUP 16.12.31 R; and

(4) a financial conglomerate, which must comply with SUP 16.12.32 R: firms that are members of a financial conglomerate will have their own reporting requirements under SUP 16.12.32 R.

Purpose

(1) Principle 4 requires firms to maintain adequate financial resources. The Interim Prudential sourcebooks, PRU, BIPRU and GENPRU set out the FSA's detailed capital adequacy requirements. By submitting regular data, firms enable the FSA to monitor their compliance with Principle 4 and their prudential requirements in the FSA Handbook.

(2) The data items submitted help the FSA analyse firms' financial and other conditions and performance and to understand their business. By means of further collation and review of the data which the data items provide, the FSA also uses the data items to identify developments across the financial services industry and its constituent sectors.

(3) The requirements in this section differ according to a firm's regulated activity group (RAG), as different information is required to reflect different types of business. Standard formats are used for reporting, to 5assist5 compatibility between firms which carry on similar types of business. Timely submission is important to ensure the FSA has up-to-date information.

Reporting requirement

(1) Any firm permitted to 6carry6 on any of the activities within each of the RAGs set out in column (1) of the table in SUP 16.12.4 R must:

(a) 

(i) unless (ii) or (iii) 3applies, submit to the FSA the duly completed data items or other items applicable to the firm as set out in the provision referred to in column (2) of that table;

(ii) 3unless (iii) applies, where 3 a firm is required to submit completed data items 3for 3more than one RAG, 3that3 firm must only submit the data item of the same name and purpose in respect of the lowest numbered RAG applicable to it, RAG 1 being the lowest and RAG 10 the highest;3

(iii) 63where a firm is, but for this rule, required to submit data items for more than one RAG and this includes the submission of data items in respect of FSA fees, the FOS or FSCS levy, or threshold conditions, that firm must only submit these data items if they belong to the lowest numbered of the RAGs applicable to it;3

(iv) in the case of a non-EEA bank, or an EEA bank (whether or not it has permission 3for accepting deposits3) other than one with 3permission for cross border services3only, any 3data items 3submitted should, unless indicated otherwise, only cover the activities of the branch operation in the United Kingdom;6

(b) submit this information 3at the frequency and in respect of the periods set out in the provision referred to in column (3); and

(c) submit this information 3by the due date referred to in the provision referred to in column (4).

(2) Unless (3) applies, any data item in (1) must be submitted by electronic means made available by the FSA;

(3) (2) does not apply to:

(a) credit unions solely in relation to the reporting requirement for RAG 1 activities, where SUP 16.3.6 R to SUP 16.3.10 G will apply;2

(b) firms in RAG 2 in relation to the reporting requirements for RAG 2 activities; and2

(c) those data items specified as "No standard format", where SUP 16.3.6 R to SUP 16.3.10 G will apply.2

(4) A firm that is a member of a financial conglomerate must also submit financial reports as required by SUP 16.12.32 R.

(1) Example 1
A 3BIPRU 730K firm3 that undertakes activities in both RAG 333and RAG 7
Overlaying the requirements of 3RAG 3 (3data items3) with the requirements of 3RAG3 7 shows the following:

(a) 3[deleted]3

(b) Professional indemnity insurance, where RAG 7 3firms3 complete Section E of the RMAR, and therefore a RAG 33 firm3 should complete that;

(c) 3[deleted]3

(d) Training and competence data, where RAG 33 firms3 should also complete Section G of RMAR;

(e) Conduct of business data, where RAG 33 firms3 should complete Section H of RMAR.3

(f) 3[deleted]3

(g) 3[deleted]3

(2) Example 2
A3 UK bank3 in RAG 1 that also carries on activities in RAG 5
Again, overlaying the RAG 1 reporting requirements with the requirements for a RAG 5 3firm3 gives the following :

(a) Lending - Business flow and rates, where Section D MLAR is required;

(b) Residential Lending to individuals - New business profile, where Section E MLAR is required;

(c) Lending - Arrears analysis, where Section F MLAR is required;

(d) Mortgage administration - Business profile, where Section G MLAR is required;

(e) Mortgage Administration - Arrears analysis, where Section H MLAR is required

(f) Analysis of loans to customers, where section A3 of MLAR is required

(g) Provisions analysis, where Section B2 of MLAR is required; and

Group liquidity reporting

Regulated Activity Group 18

Regulated Activity Group 2.1

(1) 2The financial reporting requirements for RAG 2.1 activities for insurers, excluding friendly societies, are set out in IPRU(INS).

(2) The financial reporting requirements for RAG 2.1 activities for friendly societies are set out in IPRU(FSOC).

(3) A UK insurance special purpose vehicle must submit a copy of its annual audited financial statements within 3 months of its accounting reference date, but the report is only required if it was audited as a result of a statutory provision other than under the Act.

Regulated Activity Group 2.2

Regulated Activity Group 3

(1) 2SUP 16.12.11 R to SUP 16.12.13 R do not apply to:

(a) a lead regulated firm (except in relation to data items 47 to 55 (inclusive));8

(b) an OPS firm;

(c) a local authority;4

(d) a service company.4

(2) A lead regulated firm and an OPS firm must submit a copy of its annual report and audited accounts within 80 business days from its accounting reference date.

(3) A service company must submit a copy of its annual audited financial statements within 6 months from its accounting reference date. However, the firm need only submit this if the report was audited as a result of a statutory provision other than the Act.4

Regulated Activity Group 4

(1) 2SUP 16.12.15 R to SUP 16.12.17 R do not apply to:

(a) a lead regulated firm (except in relation to data items 47 to 55 (inclusive));8

(b) an OPS firm;

(c) a local authority.

(2) A lead regulated firm and an OPS firm must submit a copy of its annual report and audited accounts within 80 business days from its accounting reference date.