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Status: You are viewing the version of the handbook as on 2011-04-29.

FINMAR 1.5 Imposing a requirement

Deciding to impose a requirement

FINMAR 1.5.1G

In deciding whether to impose a financial stability information requirement the FSA will:

  1. (1)

    review the material before it;

  2. (2)

    consider any representations received from the proposed recipient of the requirement; and

  3. (3)

    take into account:

    1. (a)

      the nature and extent of the risks to financial stability;

    2. (b)

      whether the information is more readily available from another source, taking into account the likely time and cost implications of seeking information from that source;

    3. (c)

      whether the information may assist the FSA in fulfilling its functions, for example if the information relates to the exercise of the FSA's statutory powers.

FINMAR 1.5.2G

A decision to impose the financial stability information requirement will be taken by a member of FSA staff at the appropriate level of seniority.

Scope of the requirement

FINMAR 1.5.3G

The information and documents specified will be appropriate for each case. They may be defined broadly, for example information relating to a trading strategy and its execution, or in a more limited way, for example a contract documenting a particular trade.

Notice of a financial stability information requirement

FINMAR 1.5.4G

The FSA will give a person notice in writing if it decides to impose a financial stability information requirement. The notice will describe the information and documents to which the requirement relates and include the FSA's reasons for imposing the requirement.

Requiring documents to be verified or authenticated

FINMAR 1.5.5G

The FSA may, where it is reasonable to do so, require a person subject to a financial stability information requirement to provide:

  1. (1)

    verification of any information; or

  2. (2)

    authentication of any document;

that the person provides to the FSA in accordance with that requirement.

FINMAR 1.5.6G

When deciding whether to require verification or authentication the FSA will take into account the circumstances of each case, including:

  1. (1)

    the type of information or documents required and whether there is a particular need for the information to be exactly accurate;

  2. (2)

    the likely additional cost to the person providing the information or documents;

  3. (3)

    the extent to which verification or authentication may improve the quality or reliability of the information or documents; and

  4. (4)

    the nature of any previous communications between the person and the FSA.

FINMAR 1.5.7G

The FSA may, where it is reasonable to do so, require the information or documents to be verified or authenticated in any manner. Examples of verification or authentification include:

  1. (1)

    a signed declaration by an officer or employee of a body corporate;

  2. (2)

    a declaration by a commissioner for oaths that a copy of a document is a true copy of the original; and

  3. (3)

    a declaration by the person's accountant or auditor that the information provided appears to be accurate.