Forms, Reporting and Notification
This page applies to all licenceholders, except in relation to Class 8 activities.
Contents
Quarterly Financial Returns and calculations
Ad-hoc notification and consent requirements
Maintaining policies and registers
Scheduled reporting requirements
Part 2 of the Financial Services Rule Book 2009 “Financial Resources and Reporting” specifies reporting requirements for all licenceholders. Scheduled reports are due on two main cycles – annual and quarterly (a handful of Class 2 licenceholders make a report after six months).
The attached table of reporting requirements covers regular reporting requirements for all regulated activities.
Introduction to Annual Returns
All of the material that is due on annually must be submitted within four months after the licenceholder’s financial year end, except for one item:
• Accounts of a parent company under rule 2.11 (where there is a parent company) are due not later than six months after the end of the licenceholder’s financial year.
Sending in the Annual Compliance Return and annual financial returns
Every licenceholder is required to complete an Annual Compliance Return within four months after its financial year end. There are two forms, one for the majority of licenceholders and a short form which is solely for professional officers, licensed under Class 4 or 5.
Returns made in 2010 should use the new forms, as above, including returns for financial years ending in September to December 2009. The Rule Book changes with effect from 1 January 2010 should not affect the answers for the previous version of the Rule Book.
The Rules require that a number of items are submitted at the same time as the Annual Compliance Return. As the requirements are in both Part 2 and Part 5 of the Rule Book and can vary according to the licenceholder’s activity, some licenceholders had difficulty in identifying all of the obligations and complying fully in 2009. The Commission decided to respond by providing more help:
“Shuttle” Checklists
There are four checklists, which vary according to whether a licenceholder holds a Class 1 (deposit taking) licence and whether it is incorporated on the Isle of Man, or elsewhere. This table will take you to the appropriate one for your business:
| Are you incorporated in the Isle of Man? | |||
|---|---|---|---|
| Yes | No | ||
| Do you hold a Class 1 licence? | Yes | • Checklist 1 | • Checklist 2 |
| No | • Checklist 3 | • Checklist 4 |
The checklists are designed to be used on a “shuttle” basis. It is not compulsory to use the checklists, but if you do it should help you to comply and help us to check and acknowledge receipt. Please send a copy with your return and we will date stamp it, confirm the receipt or absence of each item and send a copy of the checklist back to you.
Please note the checklists are not legal documents, but are produced by the Commission to assist licenceholders to comply with the Financial Services Rule Book 2009. It is a licenceholder’s responsibility to ensure that its regulatory returns are submitted and received by the Financial Supervision Commission by the due date. Submission dates for the regulatory returns are detailed in the individual rules.
Licenceholders are subject to civil penalties if certain returns are not submitted on time. Penalties are based on length of delay and frequency of late submission of financial returns. Please see the Financial Services (Civil Penalties) Regulations 2008.
Quarterly Financial Returns and calculations
All Class 1 licenceholders and many Class 2 and Class 3 licenceholders report using the Financial Reporting System. Class 4 and 5 licenceholders do not use the Financial Reporting System, but should find the material useful, as all except professional officers are required to carry out financial resources calculations.
The document "Procedural Instructions for financial returns 2010" contains information about the calculation of financial returns, extracts from the relevant Parts of the Rule Book and some specific guidance. The document is accompanied by a spreadsheet to assist licenceholders in the calculations. It is primarily relevant to licenceholders in Classes 2 and 3 who report using the Financial Reporting System, but should also assist licenceholders in Classes 4 and 5 and those licenceholders in Classes 2 and 3 who do not report using the Financial Reporting System. The document "Quarterly Prudential Returns" contains information to assist Class 1 licenceholders in the completion of interim returns via the electronic reporting system.
Other quarterly returns
Class 1 licenceholders are notified by the Commission of requirements for statistical returns and Bank of International Settlements (“BIS”) returns. Other rules which require returns to be made on a quarterly basis are:
• Rule 6.61 Provision of statistical information. Class 3 licenceholders use the CIS statistics reporting spreadsheet to provide statistical information. The spreadsheet should be returned within 15 business days after the end of each calendar quarter;
• Rule 8.57 Pricing errors. Class 3 licenceholders notify the Commission of pricing errors in collective investment schemes within 15 business days after the end of each calendar quarter, using the CIS error reporting form.
Ad-hoc notification and consent requirements
As well as structured periodic returns, licenceholders are required to inform the Commission of various events, either on a notification basis, or requiring prior consent before an action can proceed. The attached Rule book consent and notification summary table,summarises the requirements.
Maintaining policies and registers
The attached Rule book obligations to maintain policies and Rule book obligations to keep registerssummarise the requirements.
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