MIGI 11.2 Notifications
Matters having a serious regulatory impact
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 4MIGI 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.
Communications with us in line with Principle 11
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: |
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Starting to provide a new product or service (you may need to apply for a variation of permission). |
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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). |
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Entering into, or significantly changing, a material outsourcing arrangement. |
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Any change in your firm's prudential category. |
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2. Any significant failure of your firm's systems or controls (including those reported to your firm by your auditor - if applicable). |
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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: |
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Any action that would result in a material change in your firm's financial resources or financial resources requirement. |
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A material change resulting from the payment of a special or unusual dividend or the repayment of share capital or a subordinated loan |
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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
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 |
General notification requirements
There are also the following general notification requirements:
Breaches of rules and other requirements in or under the FSMA |
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Civil, criminal or disciplinary proceedings against a firm |
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Fraud, errors and other irregularities |
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Insolvency, bankruptcy and winding up |
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Change of accounting reference date |
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Change of controller |
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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) |
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Change of auditor (appointed under FSA rules) |
When should you notify us?
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.
How do you notify us?
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.
The main relevant Handbook section is SUP 15.