SUP 16.3 General provisions on reporting

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.

This chapter has been split into eight5sections, covering:

1. (1)

   annual controllers reports (SUP 16.4);

2. (2)

   annual close links reports (SUP 16.5);

3. (3)

   compliance reports (SUP 16.6);

4. (4)

   financial reports (SUP 16.7);

5. (5)

   persistency reports (SUP 16.8);

   53
6. (6)

   annual appointed representatives reports (SUP 16.9);5

   53
7. (7)

   Verification of standing data (SUP 16.10); and58

8. (8)

   product sales data reporting (SUP 16.11).5

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.3

The compliance and financial reports sections are bothset out by category of firm, with detailed requirements set out in tables giving:

1. (1)

   a brief description of each report;

2. (2)

   the frequency with which the report is required; and

3. (3)

   the due date for submission of the report.

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.

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.

9Failure 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 10FEES 2.3).10

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.1

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. (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. (2)

   recorded postal delivery receipts showing delivery on the required day; or

3. (3)

   records of a courier service provider showing delivery on the required day.

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's accounting 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.

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.

See SUP 15.7.13 G and SUP 15.7.14 G for guidance on arrangements in SUP 16.3.20 R.

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.

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)

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).

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, remains6 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).6

Examples of reports covering a group are:

1. (1)

   the compliance reports required from banks under SUP 16.6.4 R;

2. (2)

   annual controllers reports required under SUP 16.5.4 R;

3. (3)

   annual close links reports required under SUP 16.5.4 R

4. (4)

   consolidated financial reports required from banks under SUP 16.7.7 R;

5. (5)

   consolidated reporting statements required from securities and futures firms under SUP 16.7.24 R.