FSA Consults On New Requirements For Firms' Regulatory Reporting

by Robin Pilgrim, LawAndTax-News.com, London

02 June 2006

The UK's Financial Services Authority on Thursday issued a consultation paper on new Integrated Regulatory Reporting (IRR) requirements for firms.

These will enable the FSA to use regulatory reporting to more effectively monitor and mitigate risks to the FSA's statutory objectives.

The requirements will apply to banks, building societies and investment firms (including investment managers, securities and futures firms, operators and trustees of collective investment schemes, venture capital firms and corporate finance firms).

Graeme Ashley-Fenn, FSA Director of Contact, Revenue and Information Management, explained that:

"Regulatory reporting is a key FSA supervisory tool for identifying risk within the FSA's ARROW framework of risk based supervision. The proposals will align reporting for these industry sectors within that operating framework. Many existing requirements date back to our predecessor regulators and these will be brought up to date for the FSA's needs."

"Under the proposed changes, the FSA will cease collecting data it no longer needs and will fill gaps in its data collection."

He continued:

"IRR will make the FSA easier for firms to do business with. Firms will benefit from the reduction of duplication through aligning IRR reporting dates with their financial year-ends. We will continue to engage with the industry during the consultation to ensure we end up with the right reporting requirements for all parties."

The period for consultation responses closes on 31 July 2006 for Part I, and 31 August 2006 for Parts II and III of the proposals.

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