SIFA 12.2 Notifications
Your firm must make notifications in certain circumstances. The main circumstances are listed below.
A. Matters having a serious regulatory impact:
Your firm must let us know immediately when it becomes aware, or has information that reasonably suggests, that any of the following has occurred, may have occurred or may occur in the foreseeable future: |
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If your firm fails to satisfy one or more of the threshold conditions (see paragraph 6.3.1 of the Guide). |
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Any matter that could have a significant adverse impact on your firm's reputation. |
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Any matter that could affect your firm's ability to continue providing adequate services to customers and which could result in serious detriment to a customer of the firm. |
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Any matter in respect of your firm that could result in serious financial consequences to the financial system or to other firms. |
B. Communications with us in line with Principle 11:
Compliance with Principle 11 includes but is not limited to giving the FSA notice of: |
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1. Any proposed restructuring, reorganisation or business expansion, which could have a significant impact on your firm's risk profile or resources, including but not limited to: |
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Starting to provide a new product or service (you may need to apply for a variation of Part IV permission). |
Ceasing to undertake a regulated or ancillary activity, or significantly reducing the scope of such activities. (You may need to apply for a variation of Part IV permission). |
Entering into, or significantly changing, a material outsourcing arrangement. |
Any change in your firm's prudential category. |
2. Any significant failure of your firm's systems or controls (including those reported to your firm by your auditor - if applicable). |
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3. Any action that your firm proposes to take which would result in a material change in its capital adequacy or solvency including, but not limited to: |
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Any action that would result in a material change in your firm's financial resources or financial resources requirement. |
A material change resulting from the payment of a special or unusual dividend or the repayment of share capital or a subordinated loan. |
4. Significant breaches of rules or other requirements under FSMA. |
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C. There are certain pieces of core information where we need you to give us reasonable advance notice if there is going to be a change:
Notification |
Supervision sourcebook (SUP) reference |
A change in your firm's name. |
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A change in address (to the principal place of business). |
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A change to the legal status of your firm. (You may be required to send us a new application for Part IV permission). |
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A change to supervision by an overseas regulator. |
D. General notification requirements:
Notification |
Supervision sourcebook (SUP) reference |
Breaches of rules and other requirements in or under FSMA. |
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Civil, criminal or disciplinary proceedings against a firm. |
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Fraud, errors and other irregularities. |
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Insolvency, bankruptcy and winding up. |
E. Other notification requirements:
Notification |
Handbook reference |
Change of accounting reference date. |
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Change of controller. |
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Approved persons: employees who start performing controlled functions (CFs), those who change or add CFs or those who cease performing CFs. (There are standard forms to use called 'Approved persons regime forms'). |
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Change of auditor. |
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Financial issues, such as professional indemnity insurance cover being refused or cancelled. |
IPRU(INV) 13.1.9 R |
When should you notify us?
If a notification rule requires you to send a notification within a specified period, you must send it in time for us to receive it before the end of the period. If the end of the period falls on a weekend or bank holiday, you must make sure it is received no later than the first business day after the end of the period. If a notification rule does not require notification within a specified period, then your firm should act reasonably in deciding when to notify us.
How do you notify us?
As stated above, you should normally give or send a notification for the attention of your firm's usual supervisory contact, unless otherwise stated (SUP 15.7.4 R). Normally this will be the Firms Contact Centre.
Where are the relevant Handbook sections?
The following Handbook sections are relevant:
- notification requirements: SUP 15;
- the methods of delivery: SUP 15.7.5 R; and
- notifications required for particular products or services: SUP 15.8.
Other considerations
Firms registered for Firms Online are able to see and update their standing data electronically. Standing data includes such information as address, contact details, regulated activities, auditors and accounting reference date. From 1 July 2005 firms will be required to check the data that we hold about them once a year and to let us know via Firms Online if any changes are required within 30 business days of the firm's accounting reference date.
If we do not have accurate information about your firm, we may not be able to calculate your fees accurately - for example, if we have inaccurate information on your regulated activities or number of approved persons.
The following sections are also relevant: |
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'Authorisation' - Chapter 6 |
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'Complaints reporting to the FSA' - Chapter 11.2 |
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'Reporting requirements' - Chapter 12.1 |
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Threshold Conditions sourcebook (COND) |
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PRIN 2.1 in the Handbook |
If you do mortgage or general insurance business you should also refer to MIGI 11. |
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