SUP 16.5 Annual Close Links Reports

This section applies to every firm listed in SUP 11.1.1 R (1) to SUP 11.1.1 R(8)8,5 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

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

1. (1)

   the nature of the relationship between the firm and that person;11

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2. (2)

   whether those links or that relationship are likely to prevent the appropriate regulator's effective supervision of the firm; and11

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3. (3)

   11if the person is subject to the laws, regulations or administrative provisions of a territory which is not the United Kingdom10, 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. (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

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2. (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'.

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