FCA Regulatory Return Letter - Thistle Initiatives

What happened?

The FCA issued Dear CEO letters in February 2018 to investment firms concerning the quality of the IFPRU and BIPRU regulatory returns submitted to the FCA.

The letter focuses on the most common incorrect submissions, which are;

• Certain returns, such as the Financial Reporting (FINREP) return, are not submitted at all
• The underlying templates in the COREP returns are omitted
• Inconsistent completion of COREP returns
• The sum of risk exposures is not calculated correctly, leading to an incorrect statement of firms’ capital requirements
• Reporting using incorrect units
• Not reporting cumulatively (on a year-to-date basis) on the FSA002 Income Statement

CEOs of IFPRU and BIPRU firms are being asked to review their firms’ reporting practices to ensure that they are fit for purpose and produce materially accurate data. This is important for firms since the FCA has also undertaken to review a sample of reports as at 1st October 2018 and to take further steps if shortcomings continue to be identified.

How can Thistle help you?

Thistle will continue to keep this area under review and will issue further updates where necessary.