Our Bulletin 338 included a table showing the periodic FCA reporting relevant to insurance distributors.  The Bulletin explained that, in days past, the only regular report to the FCA for an insurance intermediary was a firm’s RMAR, which was either half yearly or quarterly depending on their regulated business revenue.

This Bulletin looks to bring the reporting information up to date, setting out the various requirements in one place.

Planning is key

You may use, or be familiar with, a Compliance Monitoring Plan or something that resembles it:

In Bulletin 338 we reminded firms that such a document forms the backbone of a firm’s compliance monitoring programme for the year.  We recommend that you include reporting dates in the Plan to cover the items mentioned in the table below, where they are relevant to you.  Also, ensure that relevant areas within your business understand the nature of the reporting, what is required, and any associated timings.

Individuals who are responsible for your firm’s reporting should liaise with the various areas within your business to ensure that the required information and evidence is gathered and reviewed.  This will then support the reporting and any required notifications. Timely completion and sign-off of reporting can be incorporated into / catered for within a Compliance Monitoring Plan.

Planning is key

The table below shows the main regular reporting and notification requirements for insurance intermediaries, mainly to the FCA but also to the Competition and Markets Authority (CMA).  Not all will apply to every firm.

Note 1

The FCA has a page on its website which includes Q&As in relation to the REP-CRIM return.  The information confirms that REP-CRIM applies to firms which are subject to the MLRs, but that general insurers and general insurance intermediaries are not subject to the MLRs. However, there can be circumstances where these firms will need to submit REP-CRIM as per the relevant rules set out in the FCA’s Policy Statement PS21/4 (extending the annual financial crime reporting obligation). This will be where the firm offers other services that do fall within the scope of the REP-CRIM rules. Such as consumer credit lending (as outlined in the table above).

If you have assessed, based on SUP 16.23 and the Policy Statement referenced above, that you do not need to submit REP-CRIM, please contact us for assistance in notifying the FCA (along with your assessment on why you are not in scope) well before the REP-CRIM due dates.

Note 2

As with the REP-CRIM return, the new FIN074 Financial Crime Levy return impacts firms the FCA believes (not always correctly) are subject to the Money Laundering Regulations between 6th April and 5th April in the following year (so for reporting this year, between 6th April 2022 and 5th April 2023).  Impacted firms will see the new levy appear on invoices from July 2023.  The levy will be paid annually and determined by a firm’s UK revenue.  To ensure firms are charged the right amount, all impacted firms must submit their data annually via new FIN074.  A failure to submit in time may result in a £250 administrative fee.

Actions for firms

Actions – regular / periodic reporting and notifications

  • Include reporting dates in a compliance monitoring plan / annual compliance plan
  • Ensure relevant business areas understand reporting required & associated timing
  • Liaise with business areas to ensure processes are in place to capture required information
  • Ensure completion and sign-off process is timely

UKGI Support available

If you have any questions regarding reporting requirements, or if you have any other compliance related issues to raise, please be assured that we are here as always to offer advice and assistance. Please contact the Compliance helpline on 01925 767888 or by e-mail to helpline@ukgigroup.com.