SUP 16.5 Annual Close Links Reports
Application
This section applies to every firm listed in SUP 11.1.1 R (1) to SUP 11.1.1 R (6),5 except those firms excluded from its operation by SUP 16.1.1 R and SUP 16.1.3 R or which have elected to report on a monthly basis in accordance with SUP 11.9.5 R.5432
5Purpose
A firm is required to notify the appropriate regulator of changes to its close links (see SUP 11.9). The effective supervision threshold conditions provide that, if a firm has close links with another person, the matters which are relevant in determining whether a firm satisfies the condition of being capable of being effective supervised include:11
11- (1)
the nature of the relationship between the firm and that person;11
11 - (2)
whether those links or that relationship are likely to prevent the appropriate regulator's effective supervision of the firm; and11
11 - (3)
11if the person is subject to the laws, regulations or administrative provisions of a territory which is not an EEA State, whether those foreign provisions, or any deficiency in their enforcement, would prevent the appropriate regulator's effective supervision of the firm.
The purposes of the rules and guidance in this section are:
- (1)
to ensure that, in addition to such notifications, the appropriate regulator11 receives regular and comprehensive information about the identities of all persons with whom a firm has close links, which is relevant to a firm's continuing to satisfy the effective supervision threshold conditions11 and to the protection of consumers; and
1111 - (2)
to implement certain requirements relating to the provision of information on close links which must be imposed on firms under the 'Post-BCCI Directive'.
Report
- (1)
A firm must submit a report to the appropriate regulator11 annually by completing the Close Links Notification Form (see 11SUP 11.9.3B G for the FCA and SUP 11.9.3C G for the PRA11) and must include5 the information in (3) or (4) (as applicable) and (5)5.
11 - (2)
A firm must submit the report in (1) to the appropriate regulator11within four months of the firm's11accounting reference date.
1111 - (3)
If a firm is not aware:
- (a)
that it has any close links; or
- (b)
of any material changes to the details in (4) (a) to (c) in respect of its close links since the submission of its previous report under (1);
then the report in (1) must confirm this.
- (a)
- (4)
Unless (3) applies, the report in (1) must contain a list of all persons with whom the firm has close links as at the firm's accounting reference date of which it is aware, and for each such person state:
- (a)
its name;
- (b)
the nature of the close links;
- (c)
if the close link is with a body corporate, its country of incorporation, address and registered number; and
- (d)
if the close link is with an individual, his date and place of birth.
- (a)
- (5)
If a group includes more than one firm, a single annual close links 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, indicate all the firms on whose behalf it is submitted and give their firm reference numbers. Nevertheless, the requirement to provide a report, and the responsibility for the report, remain with each firm in the group.1
11A firm may submit a single report satisfying the requirements of its annual controllers report (SUP 16.4.5 R) and its annual close links report (SUP 16.5.4 R). Such a report should contain the information required on both controllers and close links.
If a firm is an unincorporated friendly society, then it is only required to submit a report under SUP 16.5.4 R if it is aware that it has close links.