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IPRU-INV 9.6 NON-FINANCIAL RESOURCE REQUIREMENTS

Reconciliation of balances

IPRU-INV 9.6.1R
  1. (1)

    A firm must reconcile all balances and positions with:

    1. (a)

      banks and building societies (other than a client bank account subject to the client money rules), exchanges, approved exchanges, clearing houses and intermediate brokers; and

    2. (b)

      eligible counterparties which are members of an exchange or approved exchange

as recorded by the firm to the balance or position on a statement or circularisation obtained by the firm from those entities and must correct any differences by agreement on a timely basis, unless:

  1. (i)

    the balances and positions due to and from the eligible counterparties have been agreed by other means; or

    1. (ii)

      it arises solely as a result of identified differences in timing between the records of the firm and the bank or building society.

  2. (2)

    A firm must perform reconciliations under (1) above as frequently as is appropriate for the volume of transactions on the accounts and in any event not less than once every five weeks or, in relation to positions with eligible counterparties, not less than once every year.

  3. (3)

    A firm must circularise or request statements from banks, building societies, exchanges, approved exchanges, clearing houses, intermediate brokers and eligible counterparties which are members of an exchange or an approved exchange in good time in order to be able to comply with (1) and (2) above.

  4. (4)

    A firm must use its best endeavours to respond within one month of receipt to any circularisation from another firm requesting confirmation of outstanding balances.

IPRU-INV 9.6.2G

For guidance notes on the reconciliation of a firm's balance with market counterparties see Appendix 20 to Chapter 3.

Financial notification

IPRU-INV 9.6.3R

A firm must notify the FCA in writing as soon as it has reason to believe that it is in breach of its own funds requirement.