Related provisions for MCOB 4.1.3
Table: Application of capital resources requirements
Regulated activities |
Provisions |
|
1. |
(a) insurance distribution activity6; or (b) home finance mediation activity1(or both); and no other regulated activity. 1 |
|
2. |
(a) home financing1not connected to regulated mortgage contracts2; or (b) home financing1 and home finance administration1(not connected to regulated mortgage contracts)2; and no other regulated activity. 111111 |
|
3. |
home finance administration;1 and no other regulated activity. 11 |
|
4. |
insurance distribution activity6; and (a) home financing1; or (b) home finance administration1 (or both). 1111 |
|
5. |
home finance mediation activity;1 and (a) home financing1, or (b) home finance administration1(or both). 11111 |
|
[deleted]2 2 |
||
27. |
a) home financing connected to regulated mortgage contracts; or (b) home financing and home finance administration connected to regulated mortgage contracts; and no other regulated activity. |
|
28. |
any combination of regulated activities not within rows 1 to 7. |
Table of applicable rules containing data items4, frequency and submission periods
(1) |
(2) |
(3) |
(4) |
|
RAGnumber |
Provisions containing: |
|||
applicabledata items |
reporting frequency/ period |
due date32 32 |
||
271212 | 37 | |||
RAG 1 |
• accepting deposits • meeting of repayment claims76 managing dormant account funds (including the investment of such funds)76 |
RAG 1 firms should complete their prudential reporting requirements as set out in the PRA Rulebook.76 |
||
RAG 2.1 |
• effecting contracts of insurance • carrying out contracts of insurance • entering as provider into a funeral plan contract |
2 | 2 | 2 |
RAG 2.2 |
• managing the underwriting capacity of a Lloyds syndicate as a managing agent at Lloyds • advising on syndicate participation at Lloyds • arranging deals in contracts of insurance written at Lloyds |
|||
RAG 3 |
• dealing in investment as principal • dealing in investments as agent • advising on investments (except P2P agreements) 67 (excluding retail investment activities) • arranging (bringing about) deals in investments (excluding retail investment activities) • advising on P2P agreements (when carried on exclusively with or for professional clients)67 |
3737 | SUP 16.12.10 R2SUP 16.12.12 R78 37 |
|
RAG 4 |
• managing investments • establishing, operating or winding up a collective investment scheme • establishing, operating or winding up a stakeholder pension scheme • establishing, operating or winding up a personal pension scheme2 • operating an electronic system in relation to lending (FCA-authorised persons only)48 3838385 |
3737 | SUP 16.12.14 R2SUP 16.12.16 R78 37 |
|
RAG 5 |
• home finance administration or home finance providing activity11 • the activity of a P2P platform operator facilitating a home finance transaction, where the lender or provider does not require permission to enter into the transaction83 11 |
76SUP 16.12.18BR 37 and SUP 16.12.18C R58 258 |
76SUP 16.12.18BR 37 and SUP 16.12.18C R58 258 |
76SUP 16.12.18BR 37 and SUP 16.12.18C R58 258 |
RAG 6 |
• safeguarding and administration of assets (without arranging) • arranging safeguarding and administration of assets • acting as trustee or depositary of an AIF38 • acting as trustee or depositary of a UK UCITS82 38403838 |
|||
RAG 7 |
• retail investment activities • advising on P2P agreements (except when carried on exclusively with or for professional clients)67 • advising on pensions transfers & opt-outs • arranging (bringing about deals) in retail investments |
377837 | 3737 | |
RAG 8 |
• making arrangements with a view to transactions in investments • operating a multilateral trading facility4 • operating an organised trading facility35 |
80377837 | ||
RAG 9 |
• home finance mediation activity14 • insurance distribution activity84 (non-investment insurance contracts) 14 |
|||
RAG 10 |
96 | |||
81 | ||||
The applicable data items, reporting frequencies and submission deadlines referred to in SUP 16.12.4 R are set out in the table below. Reporting frequencies are calculated from a firm'saccounting reference date, unless indicated otherwise. The due dates are the last day of the periods given in the table below following the relevant reporting frequency period.
Data item (note 1) |
Frequency |
Submission deadline |
|
Balance Sheet |
Sections A.1 and A.2 MLAR |
Quarterly |
|
Income Statement |
Sections B.0 and B.1 MLAR |
Quarterly |
|
Capital Adequacy(notes 4 and 5)70 58 |
Section C MLAR |
Quarterly |
|
Lending - Business flow and rates |
Section D MLAR |
Quarterly |
|
Residential Lending to individuals - New business profile |
Section E MLAR |
Quarterly |
|
Lending - arrears analysis |
Section F MLAR |
Quarterly |
|
Mortgage Administration - Business Profile |
Section G MLAR |
Quarterly |
|
Mortgage Administration - Arrears analysis |
Section H MLAR |
Quarterly |
|
Analysis of loans to customers |
Section A3 MLAR |
Quarterly |
|
Provisions analysis |
Section B2 MLAR |
Quarterly |
|
Fees and Levies |
Section J MLAR |
Annually |
|
Sale and rent back |
Section K MLAR |
Annually |
|
Credit Risk (notes 2 and 4)58 58 |
Section L MLAR |
Quarterly |
|
Liquidity (notes 3 and 4)58 58 |
Section M MLAR |
Quarterly |
|
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 19A. Guidance notes for the completion of the data items are set out in SUP 16 Annex 19B. |
||
Note 2 |
Only applicable to a firm that has one or more exposures that satisfy the conditions set out in MIPRU 4.2A.4 R, and: - has permission to carry on any home financing which is connected to regulated mortgage contracts; or - has permission to carry on home financing and home finance administration which is connected to regulated mortgage contracts (and no other activity); or - has permission to carry on home finance administration which is connected to regulated mortgage contracts and has all or part of the home finance transactions that it administers on its balance sheet. |
||
Note 3 |
Only applicable to a firm that:64 - is80 subject to MIPRU 4.2D; -80 has no restriction to its Part 4A permission preventing it from undertaking new home financing or home finance administration connected to regulated mortgage contracts; and - has permission to carry on any home financing or home finance administration connected to regulated mortgage contracts. 6464 |
||
Note 4 |
Not applicable if the firm exclusively carries on home finance administration or home finance providing activities in relation to second charge regulated mortgage contracts or legacy CCA mortgage contracts (or both)66. Also not applicable if the firm is a P2P platform operator facilitating home finance transactions.83 |
||
70Note 5 |
Only applicable to a firm that is subject to MIPRU 4.2 (Capital resources requirements). |
58Additional applicable data items, reporting frequencies and submission deadlines referred to in SUP 16.12.4 R are set out in the table below for a firm carrying on home finance administration or home finance providing activities in relation to second charge regulated mortgage contracts. Reporting frequencies are calculated from a firm'saccounting reference date, unless indicated otherwise. The due dates are the last day of the periods given in the table below following the relevant reporting frequency period.
Description of data item |
Data item (note 1) |
Frequency |
Submission deadline |
Analysis of second charge loans to customers |
Section A4 64MLAR |
Quarterly |
|
Second charge business flow and rates |
Section D1 64MLAR |
Quarterly |
|
Second charge lending to individuals |
Section E1 64MLAR |
Quarterly |
|
Second charge lending - arrears analysis |
Section F1 MLAR64 |
Quarterly |
|
85Second charge mortgage administration – business profile |
Section G1 MLAR |
Quarterly |
|
Second charge mortgage administration - arrears analysis |
Section H1 MLAR64 |
Quarterly |
|
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 19AA R. Guidance notes for the completion of the data items are set out in SUP 16 Annex 19B. |
2The applicable data items, reporting frequencies and submission deadlines referred to in SUP 16.12.4 R are set out in the table below. Reporting frequencies are calculated from a firm'saccounting reference date, unless indicated otherwise. The due dates are the last day of the periods given in the table below following the relevant reporting frequency period.
Frequency |
Submission deadline |
|||
Annual regulated business revenue up to and including £5 million |
Annual regulated business revenue over £5 million |
|||
Balance Sheet |
Section A RMAR |
Half yearly |
Quarterly |
|
Income Statement |
Section B RMAR |
Half yearly |
Quarterly |
|
Capital Adequacy (note 3)58 |
Section D1 RMAR |
Half yearly |
Quarterly |
|
Professional indemnity insurance (note 2)11 |
Section E RMAR |
Half yearly |
Quarterly 11 11 |
|
Threshold Conditions |
Section F RMAR |
Half yearly |
Half yearly |
|
Training and Competence |
Section G RMAR |
Half yearly |
Half yearly |
|
COBS11 data |
Section H RMAR |
Half yearly |
Half yearly |
|
Supplementary product sales data |
Section I RMAR |
Half yearly11 11 |
Annually |
|
Client money and client assets (note 3)58 |
Section C RMAR |
Half yearly |
Quarterly |
|
Fees and levies |
Section J RMAR |
Annually |
Annually |
|
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 18A. Guidance notes for the completion of the data items is set out in SUP 16 Annex 18B. |
|||
11Note 2 |
This item only applies to firms that may be subject to an FCA80 requirement to hold professional indemnity insurance and are not MIFIDPRU investment firms89. 68 |
|||
58Note 3 |
This item does not apply to firms who only carry on home finance mediation activities exclusively in relation to second charge regulated mortgage contracts or legacy CCA mortgage contracts (or both)66 and who are not otherwise expected to complete it by virtue of carrying out other regulated activities. This item also does not apply if the firm is a P2P platform operator facilitating home finance transactions and is not required to submit it by virtue of carrying out other regulated activities. 83 |
|||
2Table of data items from an authorised professional firm
Report |
Return (note 1) |
Frequency (Note 4)24 |
Due date |
Adequate information relating to the following activities: |
RMAR (Note 3) |
Half yearly (quarterly for sections A to E for larger firms, subject to Note 3 exemptions) (note 2) |
For half yearly report: 30 business days after period end For quarterly report: 30 business days after quarter end |
(4) advising on, or arranging deals in, packaged products, or managing investments for private customers where these activities are the authorised professional firm's "main business" as determined by IPRU(INV) 2.1.2 R (3) |
|||
Adequate information relating to mortgage lending and mortgage administration. |
MLAR |
Quarterly |
20 business days after quarter end |
Note 1 |
When giving the report required, a firm must use the return indicated. The RMAR and MLAR are located at SUP 16 Annex 18A and SUP 16 Annex 19A respectively. Guidance on the completion of the data items are located at SUP 16 Annex 18B and SUP 16 Annex 19B respectively. |
||
Note 2 |
For the purposes of RMAR reporting, a larger firm is a firm whose annual regulated business revenue in its previous financial year was greater than £5m. Annual regulated business revenue for these purposes is a firm's total revenue relating to insurance distribution activity84, mortgage mediation activity and retail investment activity. |
||
Note 3 |
A firm which submits an MLAR is not required to submit sections A and B of the RMAR. |
||
Note 4 |
Reporting dates are calculated from a firm'saccounting reference date. |
Simplified summary of the territorial scope of the regulated mortgage activities for contracts entered into on or after IP completion day65, to be read in conjunction with the rest of this section.
[Note: readers wishing to understand the territorial scope of the regulated mortgage activities for contracts entered into before IP completion day6 may wish to refer to the version of this guidance as at the date on which the relevant contract was entered into.]5
This table belongs to PERG 4.11.8 G
Individual borrower resident and located: |
|||
in the United Kingdom |
outside the United Kingdom |
||
Service provider carrying on regulated activity from establishment in the United Kingdom |
land in the United Kingdom |
Yes |
Yes |
land outside the United Kingdom |
No |
No |
|
Service provider carrying on regulated activity from establishment outside the United Kingdom |
land in the United Kingdom |
Yes |
No |
land outside the United Kingdom |
No |
No |
|
Yes = authorisation or exemption required No = authorisation or exemption not required |
Summary of which variant of the business test applies to the different regulated mortgage activities. This table belongs to PERG 4.3.4 G.
By way of business |
Carrying on the business |
Entering into a regulated mortgage contract (article 61(1)) |
Arranging (bringing about) regulated mortgage contracts (article 25A(1)) and arranging (bringing about) mortgage contracts behalf of a lender (article 25A(2A))1 |
Administering a regulated mortgage contract (article 61(2)) (and the contract administered must have been entered into by way of business) |
Making arrangements with a view to regulated mortgage contracts (article 25A(2)) |
|
Advising on regulated mortgage contracts (article 53A) |
Table: Firms to which SUP 16.23.1R applies (subject to the exclusions in SUP 16.23.1R).4
a UK bank; |
||
a non-UK bank;2 |
||
a mortgage administrator; or |
||
a firm offering life and annuity insurance products. |
||
4a firm that has permission to carry on one or more of the following activities: |
||
advising on investments, provided that during the relevant financial year the firm: |
||
(i) |
held client money under CASS 5 (Client money: insurance distribution activity) and/or CASS 7 (Client money rules); and/or |
|
(ii) |
held safe custody assets under CASS 6 (Custody rules); |
|
arranging (bringing about deals) in investments, provided that during the relevant financial year the firm: |
||
(i) |
arranging (bringing about deals) in investments, provided that during the relevant financial year the firm: |
|
(ii) |
held safe custody assets under CASS 6 (Custody rules); |
|
assisting in the administration and performance of a contract of insurance in relation to non-investment insurance contracts; |
||
establishing, operating or winding up a collective investment scheme; |
||
establishing, operating or winding up a personal pension scheme; |
||
establishing, operating or winding up a stakeholder pension scheme; |
||
a firm that has reported total revenue of £5 million or more as at its last accounting reference date and has permission to carry on one or more of the following activities: |
||