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  2. Point in time
    2006-07-07

MIGI 11.1 Reporting requirements

MIGI 11.1.1 G

We require insurance and mortgage intermediaries to report certain information to us on a regular basis. Our rules relating to reporting requirements are in SUP 16.

Why do we require periodic information from firms?

MIGI 11.1.2 G

We need to receive timely information from firms that carry on mortgage and insurance mediation activities so that we can effectively supervise them. The information we collect helps us to monitor firms' adherence to the threshold conditions (see Part I, paragraph 4.2.5) and specific rule requirements, and allows us to spot trends in individual firms and in the market as a whole. It also helps us to identify firms on which we should target supervisory attention.

How is information submitted?

MIGI 11.1.3 G

The reporting requirements for mortgage and insurance intermediaries are set out in the Retail Mediation Activities Return (RMAR), which firms must submit electronically via the internet, using our 'Firms Online' system (www.fsa.gov.uk/pages/doing/regulated/firms/index.shtml). The RMAR is 'tailored' for each individual firm in line with its regulated activities and other factors, such as legal status. This is to ensure that we only ask for information that is relevant to the supervision of each firm.

What information do you need to submit in the RMAR?

MIGI 11.1.4 G
MIGI 11.1.4 rev

When and how often do I have to submit the RMAR?

MIGI 11.1.5 G

The Handbook requirements relating to RMAR reporting come into force on 1 April 2005. So, firms need to ensure that they are collecting the necessary data from this date. Starting in July 2005, we will require the RMAR to be submitted twice each year within 30 business days of the end of the relevant reporting period. The reporting periods are:

  1. (1)

    the six months immediately following a firm's accounting reference date; and

  2. (2)

    the six months immediately preceding a firm's accounting reference date.

Larger firms, defined as those with annual income of more than £5m in the previous year, will be required to submit the financial information sections every three months.

MIGI 11.1.6 G

There is a transitional arrangement in place for smaller firms (defined as those with annual income of less than £60,000). For the first year this arrangement exempts these firms from the requirement to submit financial information at their financial year mid-point (making the financial reporting requirements annual rather than half yearly).

MIGI 11.1.7 G

Your firm's timetable for RMAR reporting will be set out within the Firms Online system, based on the data we hold on your firm. The tailored RMAR for your firm will automatically be available for you to complete at the end of each reporting period.

MIGI 11.1.8 G

The reporting requirements are in SUP 16.7.76 R to SUP 16.7.81 G. In SUP 16 Ann 18A, we list the data items within the RMAR and SUP 16 Ann 18BG contains guidance notes to help you complete it. Further help is available as part of the Firms Online system, and we will also make an online training course available on our website in due course.

MIGI 11.1.9 G

The transitional rules for reporting are in SUP TR 12BR to SUP TR 12FR.

Other requirements

MIGI 11.1.10 G

Your firm is also required to check each year, within 30 business days of its accounting reference date, that we have the correct 'standing data' for the firm (16.10.4R). A firm's standing data is the information in SUP 16 Annex 16 R and includes, for example, the name and registered office of the firm, the regulated activities for which the firm has permission, the name and address of the firm's auditor (if applicable) and its accounting reference date. Your firm should check its standing data through the Firms Online system (www.fsa.gov.uk/pages/doing/regulated/firms/index.shtml) - as explained in Part I, paragraph 10.2.6 - and notify us if any data is incorrect. This requirement is in addition to the notification requirements set out in Part I, paragraph 11.2 below.

MIGI 11.1.11 G

We also collect data (known as product sales data or 'PSD') on individual transactions in mortgages and pure protection products. However, this data is submitted by the product providers rather than the intermediary firms (see SUP 16.11 for details). This information enables us to:

  1. (1)

    identify which intermediaries (and product providers) are selling particular types of product (so helping us target both our firm specific and our thematic work);

  2. (2)

    identify business being undertaken by particular intermediary firms; and

  3. (3)

    identify trends in different marketplaces, in connection with particular types of products and in connection with individual firms.

MIGI 11.2 Notifications

MIGI 11.2.1 G

In addition to regular periodic reporting, your firm must make notifications in certain circumstances. The main circumstances are set out below.

Matters having a serious regulatory impact

MIGI 11.2.2 G

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. (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. (2)

    any matter that could have a significant adverse impact on your firm's reputation;

  3. (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. (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

MIGI 11.2.3 G

As set out in SUP 15.3.8 G , compliance with Principle 11 includes, but is not limited to, giving us notice of:

1. Any proposed restructuring, reorganisation or business expansion, which could have a significant impact on your firm's risk profile or resources, including but not limited to:

Starting to provide a new product or service (you may need to apply for a variation of permission).

Ceasing to undertake a regulated or ancillary activity, or significantly reducing the scope of such activities. (You may need to apply for a variation of permission).

Entering into, or significantly changing, a material outsourcing arrangement.

Any change in your firm's prudential category.

2. Any significant failure of your firm's systems or controls (including those reported to your firm by your auditor - if applicable).

3. Any action that your firm proposes to take which would result in a material change in its capital adequacy or solvency including, but not limited to:

Any action that would result in a material change in your firm's financial resources or financial resources requirement.

A material change resulting from the payment of a special or unusual dividend or the repayment of share capital or a subordinated loan

4. Significant breaches of rules or other requirements under the FSMA, e.g. professional indemnity insurance cover being refused or cancelled.

Core information where advance notice is required

MIGI 11.2.4 G

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

MIGI 11.2.5 G

There are also the following general notification requirements:

Breaches of rules and other requirements in or under the FSMA

SUP 15.3.11 R

Civil, criminal or disciplinary proceedings against a firm

SUP 15.3.15 R

Fraud, errors and other irregularities

SUP 15.3.17 R

Insolvency, bankruptcy and winding up

SUP 15.3.21 R

Change of accounting reference date

SUP 16.3.17 R

Change of controller

SUP 11.3

Approved persons: employees who start performing controlled functions, those who change or add controlled functions or those who cease performing controlled functions. (There are standard forms to use called 'Approved Persons regime forms' - see Part I, paragraph 6.4.4 and 6.4.6)

SUP 10.11

Change of auditor (appointed under FSA rules)

SUP 3.3

When should you notify us?

MIGI 11.2.6 G

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?

MIGI 11.2.7 G

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.

MIGI 11.2.8 G

In some cases, where the matter is urgent and significant, you will need to telephone the Firm Contact Centre (see Part I, paragraph 20.1.13 for contact details).

MIGI 11.2.9 G

The main relevant Handbook section is SUP 15.

Other considerations

MIGI 11.2.10 G

You must take reasonable steps to ensure that all information that your firm sends to us is accurate, truthful, complete and not misleading.

MIGI 11.2.11 G

The following chapters of this Guide are also relevant:

Authorisation - Part I, Chapter 4

Complaints Reporting to the FSA - Part I, Chapter 14.3