Related provisions for SUP 16.18.10
21 - 40 of 124 items.
In order to enable the compliance function to discharge its responsibilities properly and independently, a common platform firm and a management company8 must ensure that the following conditions are satisfied:(1) the compliance function must have the necessary authority, resources, expertise and access to all relevant information;(2) a compliance officer must be appointed and must be responsible for the compliance function and for any reporting as to compliance required by SYSC
(1) 4A firm which is not a common platform firm or management company8 and which carries on designated investment business with or for retail clients or professional clients must allocate to a director or senior manager the function of:(a) having responsibility for oversight of the firm's compliance; and(b) reporting to the governing body in respect of that responsibility.(2) In SYSC 6.1.4A R (1) compliance means compliance with the rules in:(a) COBS (Conduct of Business sourcebook);(b)
There is no duty on a person to report information directly to the regulator concerned unless they are one of the persons responsible within the firm for reporting matters to the regulator concerned. However, if a person takes steps to influence the decision not to report to the regulator concerned or acts in a way that is intended to obstruct the reporting of the information to the regulator concerned, then the appropriate regulator will, in respect of that information, view
The following is a non-exhaustive list of examples of conduct that would be in breach of rule 3.(1) Failing to report promptly in accordance with their firm's internal procedures (or, if none exist, direct to the regulator concerned), information in response to questions from the FCA, the PRA, or both the PRA and the FCA.(2) Failing without good reason to: (a) inform a regulator of information of which the approved person was aware in response to questions from that regulator;
(1) 5Unless exempt under FEES 6.2.1 R or FEES 6.2.1A R11, a participant firm must provide the FSCS by the end of February each year (or, if it has become a participant firm part way through the financial year, by the date requested by the appropriate regulator) with a statement of:4(a) 10classes to which it belongs; and410(b) the total amount of business (measured in accordance with the appropriate tariff base or tariff bases) which it conducted, in respect of the most recent
If a participant firm does not submit a complete statement by the date on which it is due in accordance with FEES 6.5.13 R and any prescribed submission procedures:(1) the firm must pay an administrative fee of £250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2A R, Part 119 or FEES 5.4.1 R for the same financial year); and19(2) the compensation costs levy and any specific costs levy will be calculated using (where relevant) the valuation or valuations
When SYSC 4.7 refers to a person having overall responsibility for a function, it means a person who has: (1) ultimate responsibility (under the governing body) for managing or supervising that function; and(2) primary and direct responsibility for: (a) briefing and reporting to the governing body about that function; and(b) putting matters for decision about that function to the governing body.
(1) A person with overall responsibility for a matter will either be a member of the governing body or will report directly to the governing body for that matter.(2) For example, a firm appoints A to be head of sales. A is not on the governing body. A reports to an executive director (B) and B reports to the governing body about the sales function. In this example B, rather than A, has overall responsibility for sales.
(1) A person who reports to another, or is subject to oversight by another, may still have overall responsibility for a function.(2) For example, a head of compliance may report direct to the governing body but be subject to performance appraisal by the chief executive. In this example, the head of compliance will still have overall responsibility for compliance.(3) If a person (A):(a) reports directly to the firm'sgoverning body about a particular matter; but(b) is not a member
The FCA would not consider it unusual if a person who has overall responsibility for a particular function was not a member of the governing body. For example, in some firms, the head of compliance reports directly to the governing body even though the head compliance is not a member of the governing body.
A firm must include, as a minimum, the following requirements in its terms of reference for an IGC:(1) the IGC will act solely in the interests of relevant policyholders;(2) the IGC will assess the ongoing value for money for relevant policyholders delivered by relevant schemes particularly, though not exclusively, through assessing:(a) whether default investment strategies within those schemes:(i) are designed and executed in the interests of relevant policyholders;(ii) have
A firm must:(1) take reasonable steps to ensure that the IGC acts and continues to act in accordance with its terms of reference;(2) take reasonable steps to provide the IGC with all information reasonably requested by the IGC for the purposes of carrying out its role;(3) provide the IGC with sufficient resources as are reasonably necessary to allow it to carry out its role independently;(4) have arrangements to ensure that the views of relevant policyholders can be directly represented
(1) A firm should consider allocating responsibility for the management of the relationship between the firm and its IGC to a person at the firm holding an FCAsignificant-influence function.(2) A firm should fund independent advice for the IGC if this is necessary and proportionate.(3) A firm should not unreasonably withhold from the IGC information that would enable the IGC to carry out a comprehensive assessment of value for money. (4) A firm should have arrangements for sharing
For a transfer to another friendly society, if the conditions of 87(1) and 87(2) of the Friendly Societies Act 1992 are met a report is required from the appropriate actuary of the transferee to confirm that it will meet the necessary margin of solvency2. Where the conditions of 87(1) and 87(3) are met the appropriate authority2 may require a report from the appropriate actuary of the transferee to confirm that it will have an excess of assets over liabilities.22
For a transfer of long-term insurance business, the appropriate authority2 may, under section 88 of the Friendly Societies Act 1992, require a report from an independent actuary on the terms of the proposed transfer and on his opinion of the likely effects of the transfer on long-term policyholder members of either the transferor or (if it is a friendly society) the transferee. A summary is included in the statement sent to members (see SUP 18.4.13 G) and the full report is required
Schedule 15 to the Friendly Societies Act 1992 requires a statement to be sent to every member of a friendly society entitled to vote on a transfer or amalgamation. Among other matters this statement has to cover the financial position of the friendly society and every other participant in the transfer or amalgamation. The members should be provided with sufficient financial information about the respective financial positions of the participants to gain an understanding of the
If the information relates to a position some time in the past, the information should state that there has been no significant change or include a clear description of the changes. Differences in accounting policies and reporting requirements could lead to the loss of some comparability between participants. Such differences and their estimated financial effects (if any) should be explained.
A firm or qualifying parent undertaking must send its recovery plan or group recovery plan to the FCA within three months of the reporting reference dates specified in the table below:
Type of firm or qualifying parent undertaking |
Type of plan |
Total balance sheet assets (see SUP 16.20.3 G) |
First reporting reference date |
Ongoing reporting reference date |
firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is a significant IFPRU firm or does not include an IFPRU 730k firm |
More than £2.5 billion |
30 June 2015 |
Every year on the same date as the first reporting reference date. |
|
More than £1 billion and less than £2.5 billion |
30 September 2015 |
|||
More than £500 million and less than £1 billion |
31 December 2015 |
|||
Less than £500 million |
31 March 2016 |
|||
More than £2.5 billion |
30 June 2015 |
Every year on the same date as the first reporting reference date. |
||
More than £1 billion and less than £2.5 billion |
30 September 2015 |
|||
More than £500 million and less than £1 billion |
31 December 2015 |
|||
Less than £500 million |
31 March 2016 |
|||
firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is not a significant IFPRU firm (but does not include an IFPRU 730k firm that is a significant IFPRU firm) |
More than £50 million and less than £500 million |
30 September 2015 |
Every two years on the same date as the first reporting reference date. |
|
More than £15 million and less than £50 million |
31 December 2015 |
|||
More than £5 million and less than £15 million |
31 March 2016 |
|||
Less than £5 million |
30 June 2016 |
|||
More than £50 million and less than £500 million |
30 September 2015 |
Every two years on the same date as the first reporting reference date. |
||
More than £15 million and less than £50 million |
31 December 2015 |
|||
More than £5 million and less than £15 million |
31 March 2016 |
|||
Less than £5 million |
30 June 2016 |
[Note: articles 4(1)(b) and 6(1) of RRD]
A firm or qualifying parent undertaking must send the information required for a resolution plan to the FCA within three months of the reporting reference dates specified in the table below:
Type of firm or qualifying parent undertaking |
First reporting reference date |
Ongoing reporting reference date |
firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is a significant IFPRU firm or does not include an IFPRU 730k firm |
30 June 2015 |
Every two years on the same date as the first reporting reference date. |
30 June 2015 |
Every two years on the same date as the first reporting reference date. |
|
firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is not a significant IFPRU firm (but does not include an IFPRU 730k firm that is a significant IFPRU firm) |
31 December 2015 |
Every three years on the same date as the first reporting reference date. |
31 December 2015 |
Every three years on the same date as the first reporting reference date. |
[Note:articles 4(1)(b), 11(1) and 13(1) of RRD]
Where an RRD institution is authorised or an RRD group is created after the first reporting reference date that would have applied to that firm or qualifying parent undertaking in line with SUP 16.20.2 R and SUP 16.20.4 R, the firm or qualifying parent undertaking must: (1) send its first recovery plan or group recovery plan and resolution plan information within three months of the first quarter end date which falls after six months of the date of the authorisation of the RRD
(1) A firm must provide the FCA by the end of February each year (or, if the firm has become subject to the Financial Ombudsman Service part way through the financial year, by the date requested by the FCA) with a statement of the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted, as at or in the year to 31 December of the previous year as appropriate, in relation to the tariff base for each of the relevant industry
A firm may rely on a third party to calculate and report PRR capital requirements for position risk (general market risk and specific risk) for positions in CIUs falling within BIPRU 7.7.9R and BIPRU 7.7.11R, in accordance with the methods set out in BIPRU 7.7, provided that the correctness of the calculation and the report is adequately ensured.
The general eligibility criteria for using the methods in BIPRU 7.7.4R and BIPRU 7.7.9R - BIPRU 7.7.11R, for CIUs issued by companies supervised or incorporated within the EEA are that:(1) the CIU's prospectus or equivalent document must include:(a) the categories of assets the CIU is authorised to invest in;(b) if investment limits apply, the relative limits and the methodologies to calculate them;(c) if leverage is allowed, the maximum level of leverage; and(d) if investment
Where the appropriate regulator requests a firm to submit to it a written record of the firm's assessments of the adequacy of its capital resources carried out in accordance with INSPRU 7.1.15 R, those assessments must include an assessment comparable to a 99.5% confidence level over a one year timeframe that the value of assets exceeds the value of liabilities, whether or not this is the confidence level otherwise used in the firm's own assessments.
The appropriate regulator requires firms to submit a capital assessment calibrated to a common confidence level, as set out in INSPRU 7.1.42 R, to enable the appropriate regulator to assess whether the minimum capital resources requirements in GENPRU 2.1 are appropriate. This then allows the appropriate regulator to give a consistent level of individual capital guidance across the industry.
The written record of a firm'sindividual capital assessments carried out in accordance with INSPRU 7.1.15 R submitted by the firm to the appropriate regulator must:(1) in relation to the assessment comparable to a 99.5% confidence level over a one year timeframe that the value of assets exceeds the value of liabilities, document the reasoning and judgements underlying that assessment and, in particular, justify:(a) the assumptions used;(b) the appropriateness of the methodology
(1) A Chief Risk Officer should:(a) be accountable to the firm'sgoverning body for oversight of firm-wide risk management;(b) be fully independent of a firm's individual business units;(c) have sufficient authority, stature and resources for the effective execution of his responsibilities; (d) have unfettered access to any parts of the firm's business capable of having an impact on the firm's risk profile; (e) ensure that the data used by the firm to assess its risks are fit for
(1) The Chief Risk Officer should be accountable to a firm'sgoverning body.(2) The FCA9 recognises that in addition to the Chief Risk Officers primary accountability to the governing body, an executive reporting line will be necessary for operational purposes. Accordingly, to the extent necessary for effective operational management, the Chief Risk Officer should report into a very senior executive level in the firm. In practice, the FCA9 expects this will be to the chief executive,
1This
chapter applies to:(1) a MiFID
investment firm;(2) a third country investment firm; and to(3) a person who
is the operator of an approved reporting
mechanism or of a regulated
market or MTF that
is used by a firm to report transactions to the FCA; and(4) a firm acting in its capacity as
a manager or operator of:(a) a collective investment undertaking;
or(b) a pension
scheme; or(c) an occupational
pension scheme; or(d) a personal
pension scheme; or(e) a stakeholder
pension
(1) 1The
movement, reallocation or transfer of financial
instruments within the accounts of one legal entity will be
reportable where the movement, reallocation or transfer is as a result of
an agreement to transfer rights in a financial
instrument to which this chapter applies between clients of the firm or
between the firm (or a member
of its group) and a client, and where the movement, reallocation
or transfer involves a transaction within the meaning of Article 5 of the MiFID
(1) The purpose of this section is to set out the requirements for a firm specified in SUP 16.16.1 R to report the outcomes of its prudent valuation assessments to the FCA4 and to do so in a standard format.277(2) The purpose of collecting this data on the prudent valuation assessments made by a firm is to assist the FCA4 in assessing the capital resources of firms, to enable the FCA4 to gain a wider understanding of the nature and sources of measurement uncertainty in fair-valued
(1) 7A firm to which this section applies must submit to the FCA4 quarterly (on a calendar year basis and not from a firm'saccounting reference date), within six weeks of each quarter end, a Prudent Valuation Return in respect of its fair-value assessments in the format set out in SUP 16 Annex 31A.2(2) [deleted]47777
The systems and controls function is the function of acting in the capacity of an employee of the firm with responsibility for reporting to the governing body of a firm, or the audit committee (or its equivalent) in relation to:(1) its financial affairs;(2) setting and controlling its risk exposure (see SYSC 3.2.10 G and SYSC 7.1.6 R);(3) adherence to internal systems and controls, procedures and policies (see SYSC 3.2.16 G and SYSC 6.2).
1For a full-scope UK AIFM, the requirement to have an employee responsible for reporting to the governing body of the firm or the audit committee for matters in SUP 10A.8.1R (2) and SUP 10A.8.1R (3) is derived from the AIFMD level 2 regulation, which imposes obligations on such firms to have a permanent risk management function and, where appropriate and proportionate for their business, an internal audit function.
Where the skilled person is appointed by the person in SUP 5.2.1 G or SUP 5.2.2 G, the FCA1 will normally require the skilled person to be appointed to report to the FCA1 through that person. In the normal course of events the FCA1 expects that the person in SUP 5.2.1 G or SUP 5.2.2 G2 will be given the opportunity to provide written comments on the report or the collection of the relevant information prior to its submission to the FCA1. 222222222
(1) A firm which carries on designated investment business with or for retail clients or professional clients8 must allocate to a director or senior manager the function of:8(a) having responsibility for oversight of the firm's compliance; and(b) reporting to the governing body in respect of that responsibility.1(2) In 10 (1) "compliance" means compliance with the rules in:(a) COBS8(Conduct of Business); 8(b) COLL ( Collective Investment Schemes sourcebook)10; and1010(c) CASS
9(1) Depending on the nature, scale and complexity of its business, it may be appropriate for a firm to delegate much of the task of monitoring the appropriateness and effectiveness of its systems and controls to an internal audit function. An internal audit function should have clear responsibilities and reporting lines to an audit committee or appropriate senior manager, be adequately resourced and staffed by competent individuals, be independent of the day-to-day activities
The rules in SUP 16.14 provide that CASS large firms and CASS medium firms must report to the FCA in relation to the identity of the entities with which they deposit client money and the amounts of client money deposited with those entities. The FCA will use that information to monitor compliance with the diversification rule in CASS 7.13.20 R.
(1) In addition to the requirement under CASS 7.13.57 R, before adopting the alternative approach, a firm must send a written report to the FCA prepared by an independent auditor of the firm in line with a reasonable assurance engagement, stating the matters set out in (2).(2) The written report in (1) must state whether, in the auditor's opinion:(a) the firm's systems and controls are suitably designed to enable it to comply with CASS 7.13.62 R to CASS 7.13.65 R; and(b) the firm's
A firm that uses the alternative approach must not materially change how it will calculate and maintain the alternative approach mandatory prudent segregation amount under CASS 7.13.65 R unless:(1) an auditor of the firm has prepared a report that complies with the requirements in CASS 7.13.58 R (2)(b) in respect of the firm's proposed changes; and (2) the firm provides a copy of the report prepared by the auditor under (a) to the FCA before implementing the change.