SUP 17.4 Obligation to make transaction reports
When a firm (whether on its own account or on behalf of another) enters into a reportable transaction (as defined in SUP 17.5), it must make a transaction report (as set out in SUP 17.6) to the FSA.
Exceptions: general
A firm need not make a transaction report to the FSA if:
- (1)
the firm complies with a requirement on it to report the reportable transaction to its Home State regulator; or
- (2)
the reportable transaction is transacted on one of the exchanges listed in SUP 17 Annex 1 and the firm reports the reportable transaction to that exchange.
Exceptions: investment management firms and personal investment firms
An investment management firm or a personal investment firm need not make a transaction report to the FSA if:
- (1)
the reportable transaction is transacted on a regulated market and the firm:
- (a)
reports the reportable transaction to that regulated market; or
- (b)
satisfies itself that it will be so reported; or
- (a)
- (2)
the firm is the seller, or is acting on behalf of the seller, and the counterparty for that transaction is another firm; or
- (3)
the firm has reasonable grounds to believe that:
- (a)
another firm is obliged to make a transaction report to the FSA for that transaction; and
- (b)
that other firm is not entitled to rely on this exception.
- (a)
For the purposes of SUP 17.4.3 (3) 'reasonable grounds' would include a firm relying on a broker if:
- (1)
the firm used the same broker for transactions before commencement;
- (2)
that broker was previously regulated by SFA and was subject to its transaction reporting requirements; and
- (3)
the firm is not aware of any material changes to the broker's permission.
The guidance in SUP 17.4.4 is likely to become less relevant over time.
'Reasonable grounds' require more than just a check as to whether the other firm is authorised. For example a firm should not rely on SUP 17.4.3 (3) alone if the only other party to a reportable transaction is an investment management firm or a personal investment firm.
Use of reporting agents
A firm may appoint another person to make transaction reports on its behalf if:
- (1)
the firm has informed the FSA of that appointment in writing; and
- (2)
the transaction reports made on its behalf comply with SUP 17 and distinguish each individual transaction, using the firm's identifying code.
SUP 17.4.7 sets out the conditions which must be satisfied if a firm wishes to appoint someone else to make transaction reports on its behalf. The firm will remain responsible for its compliance with SUP 17.
Other reporting requirements
A firm's obligations under this chapter do not affect any obligation to report transactions under the rules of any reporting system or of any exchange, whether or not that exchange is a regulated market.