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SUP 16.6 Compliance reports

Application

SUP 16.6.1GRP

The effect of SUP 16.1.1 R is that this section applies to every firm within a category listed in the left hand column of the table in SUP 16.6.2 G.

SUP 16.6.2GRP

Applicable provisions of this section (see SUP 16.6.1 G)

Category of firm

Applicable provisions

Bank

4

SUP 16.6.4 R - SUP 16.6.5 R

Depositary of an authorised fund10

5

SUP 16.6.6 R - SUP 16.6.11R

7

Purpose

SUP 16.6.3G

[deleted]13

13
SUP 16.6.3AGRP

13The FCA performs part of its supervision work by reviewing and analysing information about firms' records of compliance with the requirements and standards under the regulatory system. The type of report the FCA requires will vary, depending on the type of business a firm undertakes. This information helps the FCA to determine whether a firm is complying with the requirements applicable to its business, and what procedures it is operating to ensure its compliance.

Banks

SUP 16.6.4RRP

A bank must submit compliance reports in the form specified in SUP 16 Annex 41R using the appropriate online systems available from the FCA’s website9.

481313
SUP 16.6.5RRP

Compliance reports from a bank (see SUP 16.6.4 R)4

Report

Frequency

Due date

List of all overseas regulators for each legal entity in the firm's group

Annually

6 months after the firm's accounting reference date13

13

Organogram showing the authorised entities in the firm's group

Annually

6 months after the firm's accounting reference date13

13

Depositaries of authorised funds 776

SUP 16.6.6RRP

A depositary of an authorised fund10 must submit compliance reports in accordance with SUP 16.6.7 R.

SUP 16.6.7RRP

Compliance reports from10 7depositaries of authorised funds10 7(see SUP 16.6.6R)6

Report

Frequency

Due date

10

10

10

6

10Breach report on the authorised fund manager's breaches as set out in SUP 16.6.8R(1A)

Monthly

30 business days after month end

10

6

10

10

10

10

10

10Oversight report on the depositary’s oversight visits as set out in SUP 16.6.8R(1B)

Quarterly

30 business days after quarter end (Note)

7

7

Note:10 The quarter ends are 31 March, 30 June, 30 September and10 31 December.

1
SUP 16.6.8RRP
  1. (1)

    [deleted]10

    1313
  2. (1A)

    The breach report from a depositary of an authorised fund to the FCA must include, for each authorised fund for which it is a depositary:10

    1. (a)

      details of all breaches of COLL or FUND, which came to the depositary’s attention or which were reported to the depositary by the authorised fund manager, during the previous month;10

    2. (b)

      details of any changes to the reported details of an existing breach, whether reported under SUP 16.6.8R(1A) or otherwise;10

    3. (c)

      details of all breaches that were reported, whether reported under SUP 16.6.8R(1A) or otherwise, and that have been closed during the previous month; and10

    4. (d)

      whether the authorised fund manager has, in the opinion of the depositary, adequate controls over: 10

      1. (i)

        the issue and cancellation of units as detailed in COLL 6.2 (Dealing); and10

      2. (ii)

        valuation and pricing as detailed in COLL 6.3 (Valuation and pricing).10

  3. (1B)

    The oversight report from the depositary to the FCA must include: 10

    1. (a)

      details of each authorised fund manager visited during the previous quarter; and10

    2. (b)

      for each area reviewed: 10

      1. (i)

        the findings and conclusions of the depositary;10

      2. (ii)

        its recommendations; and10

      3. (iii)

        the authorised fund manager’s response and comments, where available.10

  4. (2)

    [deleted]10

    131333
  5. (2A)

    [deleted]10

    66
  6. (3)

    [deleted]7

    13132
SUP 16.6.9G

[deleted]10

666
SUP 16.6.10GRP
  1. (1)

    10A depositary should report a breach only once under SUP 16.6.8R(1A)(a) and once under SUP 16.6.8R(1A)(c). When both reports are made in the same month, only a single entry in the form is required. Under SUP 16.6.8R(1A)(b) a depositary should report changes to the reported details of existing breaches.

  2. (2)

    A separate line should be entered on the form for each rule breached. For example, a breach of the investment limits in COLL 5.2.11R11 that results in incorrect pricing of the scheme contrary to COLL 6.3.3R should be recorded as two entries, with the same reference.

  3. (3)

    Under SUP 16.6.8R(1A)(c) a depositary should report all breaches that have been closed during the previous month. A breach can be closed in a number of ways. For example:

    1. (a)

      A breach that does not involve changes to systems and controls may be considered closed when, in the opinion of the depositary, the authorised fund manager has taken all necessary action to rectify the breach.

    2. (b)

      A breach that requires changes to systems and controls that cannot be implemented promptly, may nevertheless be considered closed when, in the opinion of the depositary, the authorised fund manager has implemented an effective temporary control to resolve the issue, taking into account the interests of Unitholders.

  4. (4)

    A depositary should not consider a breach closed until any applicable compensation has been paid to the scheme and/or to Unitholders.

SUP 16.6.11RRP
  1. (1)

    10A depositary must submit its breach report under SUP 16.6.8R(1A) using the form REP011 in SUP 16 Annex 12AR.

  2. (2)

    A depositary must submit its oversight report under SUP 16.6.8R(1B) using the form REP012 in SUP 16 Annex 12AR.

  3. (3)

    A depositary must submit the forms in SUP 16 Annex 12AR:

    1. (a)

      online through the appropriate systems accessible from the FCA’s website; or

    2. (b)

      if the appropriate systems are unavailable, via email to fundsupervision@fca.org.uk.