Related provisions for SYSC 13.2.3

REC 2.3.3G01/11/2007

In determining whether a UK recognised body has financial resources sufficient for the proper performance of its relevant functions, the FSA may have regard to:(1) the operational and other risks to which the UK recognised body is exposed;(2) if the UK recognised body acts as a central counterparty or otherwise guarantees the performance of transactions in specified investments, the counterparty and market risks to which it is exposed in that capacity; (3) the amount and composition

REC 2.3.6G21/06/2001

In assessing whether a UK recognised body has sufficient financial resources in relation to operational and other risks, the FSA may have regard to the extent to which, after allowing for the financial resources necessary to cover counterparty and market risks, the UK recognised body's financial resources are sufficient and sufficiently liquid:(1) to enable the UK recognised body to continue carrying on properly the regulated activities that it expects to carry on; and(2) to ensure

REC 2.3.7G21/06/2001

The FSA considers that a UK recognised body which (after allowing for the financial resources necessary to cover counterparty and market risks) has at any time:(1) liquid financial assets amounting to at least six months' operating costs; and (2) net capital of at least this amount; will, at that time, have sufficient financial resources to meet the recognition requirement unless there are special circumstances indicating otherwise.

REC 2.3.9G21/06/2001

The FSA recognises that UK recognised bodies may wish to satisfy the recognition requirements in different ways. The FSA does not prescribe any particular approach to calculating financial resources or to assessing their adequacy. It is willing to discuss with each UK recognised body the most appropriate way for it to meet the recognition requirement and each UK recognised body will need to be able to show the FSA that its financial resources are at all times sufficient to meet

SYSC 13.2.1G31/12/2006

SYSC 13 provides guidance on how to interpret SYSC 3.1.1 R and SYSC 3.2.6 R, which deal with the establishment and maintenance of systems and controls, in relation to the management of operational risk. Operational risk has been described by the Basel Committee on Banking Supervision as "the risk of loss, resulting from inadequate or failed internal processes, people and systems, or from external events". This chapter covers systems and controls for managing risks concerning any

SYSC 13.2.2G31/12/2006

Operational risk is a concept that can have a different application for different firms. A firm should assess the appropriateness of the guidance in this chapter in the light of the scale, nature and complexity of its activities as well as its obligations as set out in Principle 3, to organise and control its affairs responsibly and effectively.

SYSC 13.6.1G01/11/2007

A firm should consult SYSC 3.2.2 G to SYSC 3.2.5 G for guidance on reporting lines and delegation of functions within a firm and SYSC 3.2.13 G to SYSC 3.2.14 G for guidance on the suitability of employees and appointed representatives or, where applicable, its tied agents1. This section provides additional guidance on management of employees and other human resources in the context of operational risk.

SYSC 13.6.2G31/12/2006

A firm should establish and maintain appropriate systems and controls for the management of operational risks that can arise from employees. In doing so, a firm should have regard to:(1) its operational risk culture, and any variations in this or its human resource management practices, across its operations (including, for example, the extent to which the compliance culture is extended to in-house IT staff);(2) whether the way employees are remunerated exposes the firm to the

SYSC 13.6.3G31/12/2006

A firm should ensure that all employees are capable of performing, and aware of, their operational risk management responsibilities, including by establishing and maintaining:(1) appropriate segregation of employees' duties and appropriate supervision of employees in the performance of their responsibilities (see SYSC 3.2.5 G);(2) appropriate recruitment and subsequent processes to review the fitness and propriety of employees (see SYSC 3.2.13 G and SYSC 3.2.14 G);(3) clear

SYSC 13.7.1G31/12/2006

A firm should establish and maintain appropriate systems and controls for managing operational risks that can arise from inadequacies or failures in its processes and systems (and, as appropriate, the systems and processes of third party suppliers, agents and others). In doing so a firm should have regard to:(1) the importance and complexity of processes and systems used in the end-to-end operating cycle for products and activities (for example, the level of integration of systems);(2)

SYSC 13.7.2G31/12/2006

Internal documentation may enhance understanding and aid continuity of operations, so a firm should ensure the adequacy of its internal documentation of processes and systems (including how documentation is developed, maintained and distributed) in managing operational risk.

SYSC 13.7.3G31/12/2006

A firm may use external documentation (including contracts, transaction statements or advertising brochures) to define or clarify terms and conditions for its products or activities, its business strategy (for example, including through press statements), or its brand. Inappropriate or inaccurate information in external documents can lead to significant operational exposure.

SYSC 13.7.9G31/12/2006

Operating processes and systems at separate geographic locations may alter a firm's operational risk profile (including by allowing alternative sites for the continuity of operations). A firm should understand the effect of any differences in processes and systems at each of its locations, particularly if they are in different countries, having regard to:(1) the business operating environment of each country (for example, the likelihood and impact of political disruptions or

SYSC 13.4.1G31/12/2006

Under Principle 11 and SUP 15.3.1 R, a firm must notify the FSA immediately of any operational risk matter of which the FSA would reasonably expect notice. SUP 15.3.8 G provides guidance on the occurrences that this requirement covers, which include a significant failure in systems and controls and a significant operational loss.

SYSC 13.4.2G31/12/2006

Regarding operational risk, matters of which the FSA would expect notice under Principle 11 include:(1) any significant operational exposures that a firm has identified;(2) the firm's invocation of a business continuity plan; and(3) any other significant change to a firm's organisation, infrastructure or business operating environment.

SYSC 13.9.1G31/12/2006

As SYSC 3.2.4 G explains, a firm cannot contract out its regulatory obligations and should take reasonable care to supervise the discharge of outsourced functions. This section provides additional guidance on managing outsourcing arrangements (and will be relevant, to some extent, to other forms of third party dependency) in relation to operational risk. Outsourcing may affect a firm's exposure to operational risk through significant changes to, and reduced control over, people,

SYSC 13.9.3G31/12/2006

A firm should not assume that because a service provider is either a regulated firm or an intra-group entity an outsourcing arrangement with that provider will, in itself, necessarily imply a reduction in operational risk.

SYSC 13.9.4G31/12/2006

Before entering into, or significantly changing, an outsourcing arrangement, a firm should:(1) analyse how the arrangement will fit with its organisation and reporting structure; business strategy; overall risk profile; and ability to meet its regulatory obligations;(2) consider whether the agreements establishing the arrangement will allow it to monitor and control its operational risk exposure relating to the outsourcing;(3) conduct appropriate due diligence of the service

SUP 16.12.11R01/02/2008

The applicable data items referred to in SUP 16.12.4 R are set out according to firm type in the table below:

Description of data item	Firms prudential category and applicable data items (note 1)
	BIPRU firms (note 17)2			Firmsother thanBIPRU firms
	730K	125K and UCITS investment firms	50K	IPRU(INV)2Chapter 3	IPRU(INV)2Chapter 5	IPRU(INV)2Chapter 9	IPRU(INV)2Chapter 13	UPRU
Annual accounts	No standard format			No standard format (note 19)2	No standard format2		No standard format (note 21)3	No standard format3
Annual accounts of the mixed-activity holding company (note 10)	No standard format
Solvency statement	No standard format (note 11)			No standard format (note 20)	No standard format (note 11)2			No standard format (note 11)5
Balance sheet	FSA001 (note 2)	FSA001 (note 2)	FSA001 (note 2)	FSA029 (note s 16 and 18)2	FSA029 (note 16)2	FSA0292	FSA029 (note 16)2 or Section A RMAR (note 21)3	FSA029 (note 16)2
Income statement	FSA002 (note 2)	FSA002 (note 2)	FSA002 (note 2)	FSA030 (notes 16 and 18)2	FSA030 (note 16)2	FSA0302	FSA030 (note 16)2 or Section B RMAR (note 21)3	FSA030 (note 16)2
Capital adequacy	FSA003 (note 2)	FSA003 (note 2)	FSA003 (note 2)	FSA033 (notes 16 and 18)2	FSA034 or FSA035 (note 14 and 16)2	FSA0312	FSA032 (note 15) or FSA037 (note 15 and 16)2 or Sections D1 and D2 RMAR (note 21)3	FSA036 (note 16)2
Credit risk	FSA004 (notes 2, 3)	FSA004 (notes 2, 3)	FSA004 (notes 2, 3)
Market risk	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)
Market risk - supplementary	FSA006 (note 5)	FSA006 (note 5)	FSA006 (note 5)
Operational risk	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)
Large exposures	FSA008 (note 2)	FSA008 (note 2)	FSA008 (note 2)
UK integrated group large exposures	FSA018 (note 12)	FSA018 (note 12)	FSA018 (note 12)
Solo consolidation data	FSA016	FSA016	FSA016
Pillar 2 questionnaire	FSA019 (note 8)	FSA019 (note 8)	FSA019 (note 8)
Non-EEA sub-group	FSA028 (note 9)	FSA028 (note 9)	FSA028 (note 9)
3Threshold conditions							Section F RMAR (note 21) 3
2Client money and client assets	FSA039	FSA039	FSA039	FSA039 (note 18)	FSA039	FSA039	Section C RMAR (note 21) or 3FSA039	FSA039
2CFTC	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040	FSA0403
6IRB portfolio risk	FSA045 (note 22)	FSA045 (note 22)	FSA045 (note 22)
6Securitisation	FSA046 (note 23)	FSA046 (note 23)	FSA046 (note 23)
Note 1	When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24. Guidance notes for completion of the data items are contained in SUP 16 Annex 25.
Note 2	Firms that are members of a UK consolidation groupsubject to the capital resources requirement at stages 2, 3 or 4 of BIPRU 8 Annex 5 are also required to submit this report on a UK consolidation group basis.
Note 3	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two quarterly submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two quarterly submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above.In both cases, the threshold is exceeded ifdata element 77A in data item FSA003 (or similar) is greater than £10 million, or its currency equivalent, at the reporting date.
Note 4	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two quarterly submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two quarterly submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above.In both cases, the threshold is exceeded if data element 93A in data item FSA003 (or similar) is greater than £50 million, or its currency equivalent, at the reporting date.
Note 5	Only applicable to firms with a CAD2 waiver under GENPRU 2.1.52 R.
Note 6	This will not be applicable to BIPRU limited activity firms or BIPRU limited licence firms unless they have a waiver under BIPRU 6.1.2 G.
Note 7	This is only applicable to a firm that has adopted, in whole or in part, either the Standardised Approach, Alternative Standardised Approach, or Advanced Modelling Approaches under BIPRU 63.
Note 8	Only applicable to BIPRU investment firms 5 that are: (a) subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; (b) subject to consolidated supervision under BIPRU 8 that have been granted an investment firm consolidation waiver; and (c) not subject to consolidated supervision under BIPRU 8. A BIPRU investment firm 5 under (a) shouldcomplete the report on the basis of its UK consolidation group. A BIPRU investment firm 5 under (b) or (c) shouldcomplete the report on the basis of its solo position.
Note 9	This will be applicable to firms that are members of a UK consolidation group 4 on the reporting date. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
Note 10	Only applicable to a firm whose ultimate parent is a mixed activity holding company.
Note 11	Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner.
Note 12	Members of a UK integrated group should only submit this data item at the UK integrated group level. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
2Note 13	This does not apply to a firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm.
2Note 14	FSA034 must be completed by a firm not subject to the exemption in IPRU(INV) 5.2.3(2)R. FSA035 must be completed by a firm subject to the exemption in IPRU(INV) 5.2.3(2)R.
2Note 15	FSA032 must be completed by a firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm. FSA037 must be completed by any other firm subject to IPRU(INV) Chapter 13 carrying out RAG 3 activities.
2Note 16	The annual data item to be submitted is additional to the fourth quarterly return to be submitted. The information to be submitted in the annual data item must (except for exempt CAD firms or firms subject to the small firms audit exemption) be audited before it is submitted.
2Note 17	An exempt BIPRU commodity firm will, by virtue of the definition of BIPRU TP 15, be exempt from completing FSA003 (and thus FSA004, FSA005, FSA006 and FSA007) for the duration of the transitional provision. It is however required to submit all other data items applicable according to the firm's BIPRU classification including, for the avoidance of doubt, BIPRU TP 16.
2Note 18	Except if the firm is an adviser, local or traded options market maker (as referred to in IPRU(INV) 3-60(4)R.
2Note 19	In the case of an adviser, local or traded options market maker (as referred to in IPRU(INV) 3-60(4)R), it is only required from partnerships and bodies corporate, and then only if the report was audited as a result of a statutory provision other than under the Act.
2Note 20	Only required in the case of an adviser, local or traded options market maker (as referred to in IPRU(INV) 3-60(4)R) that is a sole trader.
3Note 21	This is only applicable to a firm subject to IPRU(INV) Chapter 13 which is not an exempt CAD firm.
6Note 22	Only applicable to firms that have an IRB permission to use the IRB approach and BIPRU 4.
6Note 23	Only applicable to firms that undertakesecuritisations.

SUP 16.12.15R01/04/2008

The applicable data items referred to in SUP 16.12.4 R according to type of firm are set out in the table below:

Description of data item	Firms prudential category and applicable data items (note 1)
	BIPRU			Firmsother than BIPRU firms
	730K	125K andUCITS investment firms	50K	IPRU(INV)2Chapter 3	IPRU(INV)2Chapter 5	IPRU(INV)2Chapter 9	IPRU(INV)2Chapter 13	UPRU
2Annual accounts	No standard format8
Annual accountsof the mixed-activity holding company (note 10)	5
	No standard format5
Solvency statement (note 11	5				No standard format2			No standard format5
Solvency statement (note 11	No standard format5				No standard format2			No standard format5
Balance sheet	FSA001 (note 2)	FSA001 (note 2)	FSA001 (note 2)	FSA029 (note 16)2	FSA029 (note 16)2	FSA0292	FSA029 (note 16)2 or Section A RMAR (note 17)5	FSA029 (note 16)2
Income statement	FSA002 (note 2)	FSA002 (note 2)	FSA002 (note 2)	FSA030 (note 16)2	FSA030 (note 16)2	FSA0302	FSA030 (note 16)2 or Section B RMAR (note 17)5	FSA030 (note 16)2
Capital adequacy	FSA003 (note 2)	FSA003 (note 2)	FSA003 (note 2)	FSA033 (note 16)2	FSA034 or FSA035 (note 14 and 16)2	FSA0312	FSA032 (note 14) or 2 5Section D1 and D2 RMAR (note 17)5	FSA036 (note 16)2
Credit risk	FSA004 (notes 2, 3)	FSA004 (notes 2, 3)	FSA004 (notes 2, 3)
Market risk	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)
Market risk - supplementary	FSA006 (note 5)	FSA006 (note 5)	FSA006 (note 5)
Operational risk	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)
Large exposures	FSA008 (note 2)	FSA008 (note 2)	FSA008 (note 2)
UK integrated group large exposures	FSA018 (note 12)	FSA018 (note 12)	FSA018 (note 12)
Solo consolidation data	FSA016	FSA016	FSA016
Pillar 2 questionnaire	FSA019 (note 8)	FSA019 (note 8)	FSA019 (note 8)
Non-EEA sub-group	FSA028 (note 9)	FSA028 (note 9)	FSA028 (note 9)
5Threshold conditions							Section F RMAR (note 17)
2Volumes and type of business	FSA038	FSA038	FSA038	FSA038	FSA038	FSA038	FSA038	FSA038
2Client money and client assets	FSA039	FSA039	FSA039	FSA039	FSA039	FSA039	Section C RMAR (note 17) or 5FSA039	FSA039
2CFTC	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040
2Asset managers that use hedge fund techniques	FSA041	FSA041	FSA041	FSA041	FSA041	FSA041	FSA041	FSA041
2UCITS	FSA042	FSA042	FSA042	FSA042	FSA042	FSA042	FSA042	FSA042
6IRB portfolio risk	FSA045 (note 18)	FSA045 (note 18)	FSA045 (note 18)
6Securitisation	FSA046 (note 19)	FSA046 (note 19)	FSA046 (note 19)
Note 1	When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24 R. Guidance notes for completion of the data items are contained in SUP 16 Annex 25 G.
Note 2	Firms that are members of a UK consolidation groupsubject to the capital resources requirement at stages 2, 3 or 4 of BIPRU 8 Annex 5 are also required to submit this report on a UK consolidation group basis.
Note 3	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two quarterly submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two quarterly submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above.In both cases, the threshold is exceeded if data element 77A in data item FSA003 (or similar) is greater than £10 million, or its currency equivalent at the reporting date.
Note 4	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above.In both cases, the threshold is exceeded ifdata element 93A in data item FSA003 (or similar) is greater than £50 million, or its currency equivalent at the reporting date.
Note 5	Only applicable to firms with a CAD2 waiver under GENPRU 2.1.52 R.
Note 6	This will not be applicable to BIPRU limited activity firms or BIPRU limited licence firms unless they have a waiver under BIPRU 6.1.2 G.
Note 7	This is only applicable to a firm that has adopted, in whole or in part, either the Standardised Approach, Alternative Standardised Approach, or Advanced Modelling Approachesunder BIPRU 63.
Note 8	Only applicable to BIPRU investment firms 5 that are: (a) subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; and (b) subject to consolidated supervision under BIPRU 8 that have been granted an investment firm consolidation waiver; and (c) not subject to consolidated supervision under BIPRU 8. A BIPRU investment firm 5 under (a) should complete the report on the basis of its UK consolidation group. A BIPRU investment firm 5 under (b) or (c) should complete the report on the basis of its solo position.
Note 9	This will be applicable to firms that are members of a UK consolidation group 4 on the reporting date. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
Note 10	Only applicable to a firm whose ultimate parent is a mixed-activity holding company.
Note 11	Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner.
Note 12	Members of a UK integrated group should only submit this data item at the UK integrated group level. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
2Note 13	This does not apply to a firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm.
2Note 14	FSA034 must be completed by a firm not subject to the exemption in IPRU(INV) 5.2.3(2)R. FSA035 must be completed by a firm subject to the exemption in IPRU(INV) 5.2.3(2)R.
2Note 15	FSA032 must be completed by a firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm. 5
2Note 16	[deleted]8 8
5Note 17	This is only applicable to a firm subject to IPRU(INV) Chapter 13 which is not an exempt CAD firm.
6Note 18	Only applicable to firms that have an IRB permission to use the IRB approach and BIPRU 4.
6Note 19	Only applicable to firms that undertakesecuritisations.

SUP 16.12.22AR01/01/2008

2The applicable data items referred to in SUP 16.12.4 R are set out according to type of firm in the table below:

Description ofData item	Firm prudential category and applicable data item (note 1)
Description ofData item	BIPRU 730K firm	BIPRU 125K firm and UCITS investment firm	BIPRU 50K firm	IPRU(INV)2Chapter 13 firms carrying out European-wide activities under MiFID	IPRU(INV)2Chapter 13 firms not carrying out European-wide activities under MiFID
Annual accounts	No standard format
Annual accounts of the mixed-activity holding company (note 10)	No standard format
Solvency statement	No standard format (note 11)
Balance Sheet	FSA001 (note 2)	FSA001 (note 2)	FSA001 (note 2)	Section A RMAR2	Section A RMAR2
Income Statement	FSA002 (note 2)	FSA002 (note 2)	FSA002 (note 2)	Section B RMAR2	Section B RMAR2
Capital Adequacy	FSA003 (note 2)	FSA003 (note 2)	FSA003 (note 2)	FSA0312	Section CAPITAL ADEQUACYD1 and D2 RMAR2
Credit risk	FSA004 (notes 2, 3)	FSA004 (notes 2, 3)	FSA004 (notes 2, 3)
Market risk	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)
Market risk - supplementary	FSA006 (note 5)	FSA006 (note 5)	FSA006 (note 5)
Operational risk	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)
Large exposures	FSA008 (note 2)	FSA008 (note 2)	FSA008 (note 2)
UK integrated group large exposures	FSA018 (note 12)	FSA018 (note 12)	FSA018 (note 12)
Solo consolidation data	FSA016	FSA016	FSA016
Pillar 2 questionnaire	FSA019 (note 8)	FSA019 (note 8)	FSA019 (note 8)
Non-EEA sub-group	FSA028 (note 9)	FSA028 (note 9)	FSA028 (note 9)
Professional indemnity insurance	Section E RMAR	Section E RMAR	Section E RMAR	Section E RMAR2	Section E RMAR2
Threshold Conditions	Section F RMAR	Section F RMAR	Section F RMAR	Section F RMAR2	Section F RMAR2
Training and Competence	Section G RMAR	Section G RMAR	Section G RMAR	Section G RMAR2	Section G RMAR2
COB data	Section H RMAR	Section H RMAR	Section H RMAR	Section H RMAR2	Section H RMAR2
Supplementary product sales data	Section I RMAR	Section I RMAR	Section I RMAR	Section I RMAR2	Section I RMAR2
Client money and client assets				Section C RMAR2	Section C RMAR2
Fees and levies	Section J RMAR	Section J RMAR	Section J RMAR	Section J RMAR2	Section J RMAR2
6IRB portfolio risk	FSA045 (note 13)	FSA045 (note 13)	FSA045 (note 13)
6Securitisation	FSA046 (note 14)	FSA046 (note 14)	FSA046 (note 14)
Note 1	When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24 R, or SUP 16 Annex 18A in the case of the RMAR2. Guidance notes for completion of the data items are contained in SUP 16 Annex 25 G, or SUP 16 Annex 18B in the case of the RMAR2.
Note 2	Firms that are members of a UK consolidation group subject to the capital resources requirement at stages 2, 3 or 4 of BIPRU 8 Annex 5 are also required to submit this report on a UK consolidation group basis.
Note 3	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above. In both cases, the threshold is exceeded if data element 77A in data item FSA003 (or similar) is greater than £10 million, or its currency equivalent at the reporting date.
Note 4	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above. In both cases, the threshold is exceeded if data element 93A in data item FSA003 (or similar) is greater than £50 million, or its currency equivalent at the reporting date.
Note 5	Only applicable to firms with a CAD2 waiver under GENPRU 2.1.52 R.
Note 6	This will not be applicable to BIPRU limited activity firms or BIPRU limited licence firms unless they have a waiver under BIPRU 6.1.2 G.
Note 7	This is only applicable to a firm that has adopted, in whole or in part, either the Standardised Approach, Alternative Standardised Approach, or Advanced Modelling Approaches under BIPRU 63.
Note 8	Only applicable to BIPRU investment firms 5 that are: (a) subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; (b) subject to consolidated supervision under BIPRU 8 that have been granted an investment firm consolidation waiver; and (c) not subject to consolidated supervision under BIPRU 8. A BIPRU investment firm 5 under (a) should complete the report on the basis of its UK consolidation group. A BIPRU investment firm 5 under (b) or (c) should complete the report on the basis of its solo position.
Note 9	This will be applicable to firms that are members of a UK consolidation group 4 on the reporting date. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
Note 10	Only applicable to a firm whose ultimate parent is a mixed-activity holding company.
Note 11	Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner.
Note 12	Members of a UK integrated group should only submit this data item at the UK integrated group level. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
6Note 13	Only applicable to firms that have an IRB permission to use the IRB approach and BIPRU 4.
6Note 14	Only applicable to firms that undertake securitisations.

SUP 16.12.25AR01/04/2008

2The applicable data items referred to in SUP 16.12.4 R are set out according to type of firm in the table below:

Description of data item	Firms prudential category and applicable data item (note 1)
	BIPRU			Firmsother thanBIPRU firms
	730K	125K	50K	IPRU(INV)Chapter 3	IPRU(INV)Chapter 5	IPRU(INV)Chapter 9	IPRU(INV)Chapter 133	UPRU
Annual accounts	No standard format8
Annual accounts of the mixed-activity holding company (note 10)	No standard format
Solvency statement (note 11)	No standard format							No standard format5
Balance sheet	FSA001 (note 2)	FSA001 (note 2)	FSA001 (note 2)	FSA029 (note 16)	FSA029 (note 16)	FSA029	FSA029 (note 16) or Section A RMAR (note 17)5	FSA029 (note 16)
Income statement	FSA002 (note 2)	FSA002 (note 2)	FSA002 (note 2)	FSA030 (note 16)	FSA030 (note 16)	FSA030	FSA030 (note 16) orSection B RMAR (note 17)5	FSA030 (note 16)
Capital adequacy	FSA003 (note 2)	FSA003 (note 2)	FSA003 (note 2)	FSA033 (note 16)	FSA034 or FSA035 (note 14 and 16)	FSA033	FSA032 (note 15 or 5Section D1 and D2 RMAR (note 17)5	FSA036 (note 16)
Credit risk	FSA004 (note 2, 3)	FSA004 (note 2, 3)	FSA004 (note 2, 3)
Market risk	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)	FSA005 (notes 2, 4)
Market risk - supplementary	FSA006 (note 5)	FSA006 (note 5)	FSA006 (note 5)
Operational risk	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)	FSA007 (notes 2, 6, 7)
Large exposures	FSA008 (note 2)	FSA008 (note 2)	FSA008 (note 2)
UK Integrated group large exposures	FSA018 (note 12)	FSA018 (note 12)	FSA018 (note 12)
Solo consolidation data	FSA016	FSA016	FSA016
Pillar 2 questionnaire	FSA019 (note 8)	FSA019 (note 8)	FSA019 (note 8)
Non-EEA sub-group	FSA028 (note 9)	FSA028 (note 9)	FSA028 (note 9)3
5Threshold conditions							Section F RMAR (note 17)
Client money and client assets	FSA039	FSA039	FSA039	FSA039	FSA039	FSA039	FSA039	FSA039 or Section C RMAR (note 17)
CFTC	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040	FSA040	FSA0403
6IRB portfolio risk	FSA045 (note 18)	FSA045 (note 18)	FSA045 (note 18)
6Securitisation	FSA046 (note 19)	FSA046 (note 19)	FSA046 (note 19)
Note 1:	When submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24 R. Guidance notes for completion of the data items are contained in SUP 16 Annex 25 G.
Note 2	Firms that are members of a UK consolidation groupsubject to the capital resources requirement at stages 2, 3 or 4 of BIPRU 8 Annex 5 are also required to submit this report on a UK consolidation group basis.
Note 3	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above. In both cases, the threshold is exceeded if data element 77A in data item FSA003 (or similar) is greater than £10 million, or its currency equivalent at the reporting date.
Note 4	This is only applicable to a firm where, at the annual review of this requirement, following its accounting reference date, (a) for a firm that was reporting this data item or similar in the previous year, one or both of the last two submissions in the previous year show that the threshold was exceeded; or (b) for a firm that was not reporting this data item or similar in the previous year, both of the last two submissions in the previous year show that the threshold was exceeded; and in either case the FSA has notified the firm that it is required to submit the data item in accordance with the above. In both cases, the threshold is exceeded if data element 93A in data item FSA003 (or similar) is greater than £50 million, or its currency equivalent at the reporting date.
Note 5	Only applicable to firms with a CAD2 waiver under GENPRU 2.1.52 R.
Note 6	This will not be applicable to BIPRU limited activity firms or BIPRU limited licence firms unless they have a waiver under BIPRU 6.1.2 G.
Note 7	This is only applicable to a firm that has adopted, in whole or in part, either the Standardised Approach, Alternative Standardised Approach, or Advanced Modelling Approachesunder BIPRU 6.3
Note 8	Only applicable to BIPRU investment firms 5that are: (a) subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; (b) subject to consolidated supervision under BIPRU 8 that have been granted an investment firm consolidation waiver; and (c) not subject to consolidated supervision under BIPRU 8. A BIPRU investment firm 5under (a) should complete the report on the basis of its UK consolidation group. A BIPRU investment firm 5 under (b) or (c) should complete the report on the basis of its solo position.
Note 9	This will be applicable to firms that are members of a UK consolidation group 4 on the reporting date. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
Note 10	Only applicable to a firm whose ultimate parent is a mixed-activity holding company.
Note 11	Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner.
Note 12	Members of a UK integrated group should only submit this data item at the UK integrated group level. Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in the group.
Note 13	This does not apply to firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm.
Note 14	FSA034 must be completed by a firm not subject to the exemption in IPRU(INV) 5.2.3(2)R. FSA035 must be completed by a firm subject to the exemption in IPRU(INV) 5.2.3(2) R.
Note 15	FSA032 must be completed by a firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm. 5
Note 16	The annual data item to be submitted is additional to the fourth quarterly return to be submitted. The information to be submitted in the annual data item must (except for exempt CAD firms or firms subject to the small firms audit exemption) be audited before it is submitted.
5Note 17	This is only applicable to a firm subject to IPRU(INV) Chapter 13 that is not an exempt CAD firm.
6Note 18	Only applicable to firms that have an IRB permission to use the IRB approach and BIPRU 4.
6Note 19	Only applicable to firms that undertakesecuritisations.

BIPRU 1.3.7D01/01/2007

When an advanced measurement approach is intended to be used by an EEA parent institution and its subsidiary undertakings or the subsidiary undertakings of an EEAparent financial holding company, the application of a firm in accordance with BIPRU 1.3.14 D must include the elements listed in BIPRU 6.5.5 R (Minimum standards for the advanced measurement approach).[Note:BCD Article 105(2)]

BIPRU 1.3.8D01/01/2007

When an advanced measurement approach is intended to be used by an EEA parent institution and its subsidiary undertakings or the subsidiary undertakings of an EEA parent financial holding company, the application of a firm must include a description of the methodology used for allocating operational risk capital between the different entities of the group.[Note:BCD annexX Part 3 point 30]

FEES 3.2.7R06/10/2008

Table of application, notification and vetting fees

(1) Fee payer	(2) Fee payable	Due date
(a) Any applicant for Part IV permission (including an incoming firm applying for top-up permission)	(1) Unless (2) applies, in1 respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 part 11 which apply to that application. (2) In respect of a particular application which is: (i) a straightforward or moderately complex case for the purposes of FEES 3 Annex 1 part 1, and (ii) only involves a simple change of legal status as set out in FEES 3 Annex 1 part 6, the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 1 part 11 1	On or before the application is made
(b) Any Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights) in respect of regulated activities for which it does not have an EEA right, except for a firm providing cross border services only4	(1) Where no certificate has been issued under paragraph 3(4) of Schedule 4 to the Act the fee payable is, in respect of a particular exercise, set out in FEES 3 Annex 1, part 4 (2) Where a certificate in (i) has been issued no fee is payable	On or before the notice of exercise is given
(c) Any applicant for a certificate under article 54 of the Regulated Activities Order	2,000	On or before the application is made
(d) Applicants for an authorisation order for, or recognition of, a collective investment scheme	FEES 3 Annex 2, part 1	On or before the application is made
(f) Any person seeking an order under section 326(1) of the Act to become a designated professional body.	10,000	30 days after the order is granted
(g) Any applicant for recognition as a UK recognised body under section 287 or section 288 of the Act	FEES 3 Annex 3, part 1	On or before the date the application is made
(h) Any applicant for recognition as an overseas recognised body under section 287 or section 288 and section 292 of the Act	FEES 3 Annex 3, part 2	On or before the date the application is made
(i) An applicant for listing (under the listing rules)	FEES 3 Annex 4, part 1	On or before the date the application is made
(j) Applicant for approval as sponsor (under the listing rules)	FEES 3 Annex 4, part 2	On or before the date the application is made
(k) Issuers of tranches from debt issuance programmes and securitised derivative tranches	FEES 3 Annex 4, part 1	An upfront fee is required per tranche for draw downs in the following 12 months
(l) Under the listing rules, an issuer involved in specific events or transactions during the year where documentation is subject to a transaction vetting	FEES 3 Annex 5, part 1, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category.2	On or before the date that relevant documentation is first submitted to the FSA
(m) Under the prospectus rules, an issuer or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year	FEES 3 Annex 5, part 2, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category.2	On or before the date that relevant documentation is first submitted to the FSA
(n) Applicants to be added to the list of designated investment exchanges	50,000	On or before the date the application is made
2(o) Either:5 (i) a firm applying to the FSA for permission to use one of the advanced prudential calculation approaches listed in FEES 3 Annex 6 R (or guidance on its availability), including any future proposed amendments to those approaches or (in the case of any application being made for such permission to the FSA as EEA consolidated supervisor under the ) any firm making such an application ;5 or (ii) in the case of an application to 5a Home State regulator other than the FSA 5for the use of the Internal Ratings Based approach and the Home State regulator requesting the FSA's assistance in accordance with the Capital Requirements Regulations 2006 , any firm to which the FSA would have to apply any decision to permit the use of that approach.5 1 1 2 5 5 5	(1) Unless5 (2) applies, FEES 3 Annex 6.5 (2) (a) Unless5 (b) applies a1 firm submitting a second application for the permission or5 guidance described in column (1) within 12 months of the first application (where the fee was paid in accordance with (1)) must pay 50% of the fee applicable to it under FEES 3 Annex 6, but only in respect of that second application (b) No fee is payable by a firm in relation to a successful application for a permission5 based on a minded to grant decision in respect of the same matter following a complete application for guidance in accordance with prescribed submission requirements.1 (c) No fee is payable where the Home State regulator has requested the assistance of the FSAas described in paragraph (o)(ii) of column 1 except in the cases specified in 5FEES 3 Annex 6.2 5 2 5 1 2 5 5 5 5 5	Where the firm has made an application directly to the FSA, on or before the date the application is made, otherwise within 30 days after the FSA notifies the firm that its EEA parent's Home State regulator has requested the FSA's assistance.2 2
(p) A firm applying for a variation of its Part IV permission	(1) Unless (2) applies, if the proposed new1 business of the firm would1 fall within one or more activity groups specified in Part 1 of FEES 4 Annex 1 not applicable before the application1, the fee is 50% of the highest of the tariffs set out in which apply to that application. (2) If the only change is that the1 A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable.1 1 1	On or before the date the application is made
2(q) A significanttransaction, being one where: (i) the issuer has a market capitalisation in excess of 1.5 billion and it is a new applicant for a primary listing under the listing rules, or involved in a reverse or hostile takeover or a significant restructuring; or (ii) the issuer has a market capitalisation in excess of 5 billion and is involved in a class 1 transaction or a transaction requiring vetting of an equity prospectus or equivalent document ; or (iii) the issuer is proposing a Depositary Receipt issue intended to raise more than 5billion.	50,000	On or before the date that the relevant documentation is first submitted to the FSA.3 3 3
2(r) Providers of reporting or trade matching systems applying for recognition under MiFID as an Approved Reporting Mechanism.	100,0006 6	Having received its application, within 30 days after the FSA has notified the applicant that it is to commence testing of the applicants systems.6 5 6
5(s) In the case of an insurance business transfer scheme, a transferor. Note - for the purpose of this paragraph an insurance business transfer scheme consists of a single transferor and a single transferee. Where however such a scheme is part of a single larger scheme, that larger scheme is treated as a single insurance business transfer scheme. If an insurance business transfer scheme includes more than one transferor in accordance with this paragraph, the transferors are liable to pay the fee under column (2) jointly.	Either (1) or (2) as set out below: (1) In the case of an insurance business transfer scheme involving long term insurance business, 18,500; or (2) in the case of an insurance business transfer scheme not involving long term insurance business, 10,000.	On or before any application is made to the FSA for the appointment of a person as an independent expert.
6(t) A firm, a third party acting on a firm's behalf, an operator of a regulated market or an operator of an MTF applying to the FSA to report transaction reports directly to the FSA other than through the FSA's Transaction Reporting System (see FEES 4.2.11 R and FEES 4 Annex 3 for the fees payable for firms using the FSA's Transaction Reporting System).	100,000	Having received its application, within 30 days after the FSA has notified the applicant that it is to commence testing of the applicants systems.

SYSC 13.8.1G31/12/2006

The exposure of a firm to operational risk may increase during times of significant change to its organisation, infrastructure and business operating environment (for example, following a corporate restructure or changes in regulatory requirements). Before, during, and after expected changes, a firm should assess and monitor their effect on its risk profile, including with regard to:(1) untrained or de-motivated employees or a significant loss of employees during the period of

SYSC 13.8.3G31/12/2006

SYSC 3.2.19 G provides high level guidance on business continuity. This section provides additional guidance on managing business continuity in the context of operational risk.

BIPRU 8.7.1G01/01/2007

The calculation of the consolidated capital resources requirement of a firm's UK consolidation group or non-EEA sub-group involves taking the individual components that make up the capital resources requirement on a solo basis and applying them on a consolidated basis. Those components are the capital charge for credit risk (the credit risk capital requirement), the capital charge for market risk (the market risk capital requirement), the capital charge for operational risk (the

BIPRU 8.7.26R01/01/2007

For the purposes of calculating the consolidated operational risk requirement, a firm must apply BIPRU 6.2.9 R to BIPRU 6.2.12 R (Combination of different methodologies) to the whole UK consolidation group or non-EEA sub-group as if the group were a single undertaking.

BIPRU 8.7.29R01/01/2007

In accordance with BIPRU 8.2.1 R and BIPRU 8.3.1 R (The basic consolidation rules for a UK consolidation group or non-EEA sub-group), a firm may exclude that part of the risk capital requirement that arises as a result of:(1) (in respect of the consolidated credit risk requirement) intra-group balances; or(2) (in respect of the consolidated operational risk requirement and consolidated fixed overheads requirement) intra-group transactions;with other undertakings in the UK consolidation

BIPRU 2.2.27G01/01/2007

(1) This paragraph applies to a proportional ICAAP in the case of a firm whose activities are complex.(2) A proportional approach to that firm'sICAAP should cover the matters identified in BIPRU 2.2.26 G, but is likely also to involve the use of models, most of which will be integrated into its day-to-day management and operation.(3) Models of the sort referred to in (2) may be linked so as to generate an overall estimate of the amount of capital that a firm considers appropriate

BIPRU 2.2.61G01/01/2007

An asset manager is primarily exposed to operational risk and reputational risk.

BIPRU 2.2.63G01/01/2007

As an asset manager's mandates become more complex, the risk of it failing to comply fully with the terms of its contracts increases. In the event of such failure, a firm can be exposed to substantial losses resulting from customers' claims and legal actions. Although the FSA would expect an asset manager to have in place adequate controls to mitigate that risk, it may also like to consider the potential cost to it should customers claim that it has not adhered to mandates. Past

GENPRU 2.2.55G31/12/2006

The combined credit, operational and counterparty1 risk capital requirement is deducted after stage N of the capital resources table and the market risk requirement following stage T of the capital resources table. These calculations are shown in the table in GENPRU 2.2.56 G.

GENPRU 2.2.188R31/12/2006

The value of general/collective provisions which a firm may include in its tier two capital resources as referred to in GENPRU 2.2.187 R may not exceed 1.25% of the sum of the following:(1) the sum of the market risk capital requirement and the operational risk capital requirement (if applicable), multiplied by a factor of 12.5; and(2) the sum of risk weighted assets under the standardised approach for credit risk.

BIPRU 1.4.1R01/01/2007

A contravention of the rules in BIPRU does not give rise to a right of action by a private person under section 150 of the Act (and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action).

SYSC 13.5.1G01/11/2007

In this chapter, the following interpretations of risk management terms apply:(1) a firm's risk culture encompasses the general awareness, attitude and behaviour of its employees and appointed representatives or, where applicable, its tied agents,1to risk and the management of risk within the organisation;(2) operational exposure means the degree of operational risk faced by a firm and is usually expressed in terms of the likelihood and impact of a particular type of operational

SYSC 13.10.1G31/12/2006

Whilst a firm may take out insurance with the aim of reducing the monetary impact of operational risk events, non-monetary impacts may remain (including impact on the firm's reputation). A firm should not assume that insurance alone can replace robust systems and controls.

MIPRU 3.1.6G01/01/2007

Although financial resources and appropriate systems and controls can generally mitigate operational risk, professional indemnity insurance has a role in mitigating the risks a firm faces in its day to day operations, including those arising from not meeting the legally required standard of care when advising on investments. The purpose of this chapter is to ensure that a firm has in place the type, and level, of professional indemnity insurance necessary to mitigate these ri

SUP App 2.15.5G30/06/2005

A firm's run-off plan should show how it will address any additional operational risks that may flow from the closure of the with-profits fund, including:(1) any changes that it proposes to make to staffing arrangements for the run-off;(2) an estimate of the cost of proposed operational changes, including redundancy costs; and(3) any material outsourcing arrangements it proposes to enter into, explaining how the firm will address any specific operational risks created by those

BIPRU 3.2.28G01/01/2007

For the purpose of BIPRU 3.2.25 R (1)(c) it is the risk management functions of the group that should be integrated, rather than the group's operational management. A firm should ensure that if risk management functions are integrated in this way it should be possible for the FSA to undertake qualitative supervision of the management of the integrated risk management function.

Related provisions for SYSC 13.2.3

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