We need timely and accurate information from firms so that we can carry out our required duties under FSMA. You are required to send some information as regular reports and some as notifications if and when a particular event occurs. You may be subject to enforcement action if you fail to submit the returns on time (ENF 13.5).

We are able to build up a picture of firms' circumstances and behaviour by receiving regular reports and the information also helps us to identify where a firm or sector may be experiencing a particular problem.

This is in line with Principle 11 (Relations with regulators) that requires a firm to deal with the FSA in an open and co-operative way and to disclose anything relating to the firm that we would reasonably expect notice of, and also Principle 4 (financial prudence).

Generally firms will be required to submit returns to us electronically every six months. However the following exceptions apply.

• For the first year after the requirements are implemented we do not require smaller firms to submit financial information at their half-year end (i.e. for the six month period following their accounting reference date). This will give these firms more time to adapt to the requirements. However they must still submit the remaining RMAR sections half-yearly. For this purpose, we have defined small firms as those with an annual income of £60,000 or less.
• Larger firms will be required to report financial information quarterly. Larger firms are those with an annual income of more than £5 million.

For example, if a firm has an ARD of 31 December, it must report twice a year based on the following periods:

• 1 January - 30 June, and
• 1 July - 31 December.

A firm with an ARD of 31 March would have the following reporting periods:

• 1 April - 30 September, and
• 1 October - 31 March.

As the reporting requirements do not come into effect until 1 April, the first reporting period may be less than a full six month period for some firms. For example, one of the returns for a firm with an ARD of 31 December would normally cover the period from 1 January - 30 June. However, the first return will cover the period from 1 April 2005 to 30 June 2005 only. You will be able to view your firm's submission timetable by accessing the reporting timetable on the Firms Online system from July 2005. You can access Firms Online at: www.fsa.gov.uk/Pages/Doing/Regulated/Firms/Index.shtml

We will require the information within 30 business days of the end of each period. The reporting requirements are subject to strict time limits under our rules. If firms do not meet these time limits, we are proposing to charge firms an administration fee of £250.

You will find the reports on our website under Integrated Regulatory Reporting. The IRR homepage is: www.fsa.gov.uk/Pages/Doing/Regulated/Returns/IRR/index.shtml

You will need to notify us every six months in writing of the number of pension opt-out and pension transfer transactions that you arranged during the previous six months. There is no specified start date but you would need to send us details every six months after your first report - unless there have not been any such arrangements.

There are also related quarterly reports, which may apply to you. There are further details in COB 5.3.26 R.

You are required to keep records indefinitely of any notifications of pension transfer and opt-out transactions required by COB 5.3.26 R (1) and COB 5.3.26 R (1A).

The following sections of the Handbook are relevant:

• notifications to the FSA: SUP 15; and
• reporting to the FSA: SUP 16.

The RMAR must be submitted electronically via Firms Online. Each firm's return will be generated on the day following the end of the reporting period. The firm has 30 business days to complete and submit it.

You may be required to send other reports to us in a particular way. However, the following methods may usually be used:

• email;
• post;
• hand delivery; or
• fax - (if you deliver by fax you must also send the report by one of the methods above within five working days, depending on the particular requirement for the report).

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.

You must send a notification in writing stating your firm's FSA Reference Number (unless stated otherwise in the notification rule).

As stated above, you should normally give or send a notification for the attention of your firm's usual supervisory contact, unless otherwise stated (SUP 15.7.4 R). Normally this will be the Firms Contact Centre.

The following Handbook sections are relevant:

• notification requirements: SUP 15;
• the methods of delivery: SUP 15.7.5 R; and
• notifications required for particular products or services: SUP 15.8.

Firms registered for Firms Online are able to see and update their standing data electronically. Standing data includes such information as address, contact details, regulated activities, auditors and accounting reference date. From 1 July 2005 firms will be required to check the data that we hold about them once a year and to let us know via Firms Online if any changes are required within 30 business days of the firm's accounting reference date.

To monitor, and in some cases give prior approval to, a firm's controllers we must receive the information we need from firms. We also need to monitor the impact of any significant change in the circumstances of one or more of a firm's controllers - for example, in their financial standing. The full definition of 'controller' may be found in the Handbook Glossary. Broadly, it includes anyone with a shareholding of 10% or more or anyone who is able to exercise significant influence over the management of the firm.

SUP 11 covers controllers and close links and applies to every firm apart from partnerships and sole traders. SUP 11.3 sets out the information which a controller must give us before becoming a controller or increasing the level of control held. The rules in SUP 11.4 to SUP 11.6 cover the notification requirements on firms. SUP 11.8 and SUP 11.9 require firms to notify us of changes in the circumstances of existing controllers and of changes in their close links.

When an individual or corporate body is purchasing shares which take their holding over 10% of the shares in the firm, Part XII of FSMA requires the new controller to complete and submit a Controllers Form A. A change in control also occurs when an existing controller increases or decreases control through levels of 20%, 33% or 50% (SUP 11.3.7 D to SUP 11.3.9 D).

If the proposed new controller is an individual they must also complete a Controllers Form B for approval. If the proposed new controller is a corporate body then the chief executive and one other director are each required to complete a Controllers Form B (SUP 11.3.7 D to SUP 11.3.9 D). These may not be required if these persons are approved persons who have completed an Approved Persons Form A within the previous 12 months.

New controllers and increases in control through one of the above thresholds need to be approved by us before they happen. Applications should be submitted within 14 days of parties becoming aware of the planned change. Approval must be sought from us in advance of the change and can take up to three months. You can submit change in control forms using Firms Online.

Should approval be granted, the new controller must also notify us when the change of control actually takes place (SUP 11.3.16 G).

Firms are also required to notify a change in control (SUP 11.4.2 R). The rules about the content and timing of the notification are at SUP 11.4.7 R. A firm must also notify us when a change in control which was notified has actually taken place (SUP 11.6.4 R).

In some cases separate notifications from both a firm and its controller would duplicate documentation. So we permit joint and shared notifications from both the firm and the controller (SUP 11.5.8 G to SUP 11.5.10 G and SUP 11.6.6 G).

FSA authorisation and the scope of permission granted attaches to each firm (the legal entity) individually. When a new firm is formed, it is a different legal entity and it is not possible for authorisation to move to the new firm. The new firm must apply for authorisation. There is a Simple Change of Entity Application Pack for use when the new firm is substantially the same as the old e.g. same staff and permission. This is available from our website.

In the case of a two person partnership, if one partner leaves then the partnership is dissolved. If the firm wishes to continue in business the remaining partner will need to apply for authorisation as a sole trader. Other changes involving partners leaving a partnership could also result in a firm having to reapply for authorisation - such changes should be discussed with your usual supervisory contact.