In broad terms, incoming EEA firms carrying out regulated activities through a UK branch are not required to complete the RMAR sections in the table below. Balances in customer bank accounts and related customer accounts should not be part of the firm's own balance sheet. Note: Purchase, reversion and regulated sale and leaseback activity should be included under existing mortgage titles in this section of the RMAR.
Commissions (net) This should be the amount of gross commission retained by the firm and, where appropriate, appointed. Regulated business income This is the total income of a company during the reporting period in relation to its relevant regulated activities. Record here any income from other regulated activities outside the scope of RMAR.
Note: Purchase, reversion and regulated sale and leaseback activity should be included under existing mortgage titles in this section of the RMAR.
Sub-sections: this section is sub-divided as follows
For other credit unions, the required capital resources must be the greater of the amounts required under MIPRU or CRED. Explanation of the scope of section D2: Firms engaged in designated investment activities and subject to the RMAR, but not meeting the definition of personal investment firm, i.e.
D2: this section is completed by personal investment firms that are not subject to the requirements of MiFID and the Capital Adequacy Directive (CAD). It is used to
Section D1: guide for completion of individual fields
TOTAL CAPITAL RESOURCES This should be the total capital resources calculated in accordance with MIPRU 4 in this section (D1) for corporate or unincorporated businesses, as appropriate. The Capital Requirement ('OFR') must be calculated in accordance with Chapter 13 of the Interim Collection of Rating Resources for Investment Firms. If the company has increased the excesses or exclusions of its PII policies, the total additional capital requirements required by IPRU(INV) 13.1.4 should be recorded here.
This field should be completed using the equity figure derived from the calculation in section D2. Equity must be calculated in accordance with Chapter 13 of the Interim Prudential Sourcebook for Investment Firms. Source data for the calculation of own funds must be entered in the separate financial resources section for non-MiFID firms.
This field should be completed using the figure for adjusted net current assets derived from the calculation in section D2. Adjusted net current assets should be calculated in accordance with Chapter 13 of the Prudential Interim Sourcebook for Investment Firms. This field should be completed using the figure for adjusted capital/liquid capital derived from the calculation in section D2.
Provisional net profits Provisional net profits must be verified by the company's external auditor, excluding tax or expected dividends and other appropriations to be included as capital. Minor intangible assets Any amounts recorded as intangible assets in section A above must be entered here for deduction. See MIPRU 4.4.3R Minor Net Provisional Losses Provisional net losses must be reported where they have not.
Section D2: non-ISD personal investment firms
Any excess of withdrawals over profits must be calculated in relation to the period following the date on which the capital resources are calculated.
Own Funds (test 1)
Adjusted Net Current Assets (test 1A)
Expenditure Based Requirement (test 2)
Section E: Professional Indemnity Insurance
Section E: guide for completion of individual fields Part 1
The customer files a formal complaint regarding the sale of policy XYZ to the company on i.e. as long as this PII coverage is still in effect). The appeal is accepted, but the company's current PII insurer will not pay any compensation for this claim because the transaction took place before the retroactive start date in the policy. The customer files a formal complaint regarding the sale of policy XYZ to the company on i.e. as long as this PII coverage is still in effect).
Limitation of Indemnification You should record here the limitations of indemnification in relation to the company's policy or policies regarding personal data, both in relation to individual claims and in the aggregate. If a company is subject to more than one of the above restrictions (due to the range of regulated activities) and has one PII policy for all of its regulated activities, the different restrictions should be reflected in the policy documentation. The company must select the name of the insurance company or Lloyd's syndicate providing the cover.
This should be the income as reported on the company's most recent PII proposal form. For a personal investment company, this is the relevant income arising from all activities of the company in the last accounting year before the start or renewal of the policy (IPRU(INV) 13.1.8R). For insurance intermediaries and domestic finance intermediaries, this is the annual income reported in the company's most recent annual financial statement from the relevant regulated activity or activities (MIPRU 4.3.1R to 4.3.3R).
The sum of additional capital (ie in relation to all the company's PII policies) should have been reported under "additional capital requirements for PII" and/or "additional equity for PII" in section D1. The sum of additional capital resources (ie in relation to all the company's PII policies) should have been reported under "additional capital requirements for PII" and/or "additional capital resources for PII" in section D1. Total additional capital resources required Personal investment companies only – this is the same figure as in section D1, representing the total additional capital resources required under IPRU(INV) 13.1.23R to 13.1.27R for all the firm's PII policies.
Section F: the threshold conditions Sub-heading: close links
Total of immediately realizable capital resources Personal Investment Firms only – you should disclose here the total of the own funds reported in Part D.
Sub-heading: controllers
Section F: guide for completion of individual fields
- of the Principles for Businesses requires firms to take reasonable care to organise and control their affairs responsibly and effectively, with adequate risk
- the Commitments) consists of guidance that applies to those firms
- specific requirements for particular activities) – for those firms indicated in
- who are involved in specified activities, such as advising on investments or on home finance transactions (see, generally, TC 2.1.4R), we have set additional
It should be noted that Chapter 2 only applies in relation to non-investment insurance advice where this activity is conducted with or for private clients. We will use the data we collect in this section to assess the nature of companies. It will also establish the size and nature of companies' business activities and thereby assess the potential risks of companies' business activities.
Firms that have appointed representatives ("ARs") should note that the information presented in this section must include its ARs as well as the firm itself.
Section G: guide for completion of individual fields
However, the 'Total' in the right-hand column field should be the actual number of eligible employees, not the total of the three columns. If staff are trained in more than one type of business, they should be counted in each relevant area. The 'Total' field in the right column should be the actual number of valid ones.
For certain activities, TC 2 sets requirements for companies with regard to their employees and passing exams. If employees have qualifications related to more than one business type, they must be counted in each applicable field. This is the total number of consulting employees who have left the company during the current reporting period.
If any of these staff have previously carried out advisory activities in relation to more than one business type, they must be counted against each. If staff provide more than one type of advice, or in relation to more than one business type (ie home finance transaction advice, advice on non-investment insurance contracts or retail investment products), check all that apply. To provide independent advice, a firm must consider products from across the entire market, and offer its clients the opportunity to pay on a fee basis (MCOB 4.3.7R, COBS 6.2.15R).
The company provides all market recommendations after considering the large number of products generally available on the market as a whole. The firm makes recommendations on fair market analysis when it has considered a large number of providers in the relevant market sector(s) (ICOB 4.2.11R). The company provides multilateral advice when it recommends products selected only from a limited number of provider companies.
Sub heading: Clawed back commission (retail investment firms only) Commission is typically paid to advisers in two main ways
A company provides single-tie advice when it recommends products selected from only one supplier company.
Clawed back commission (retail investment firms only)
Section H: Conduct of Business (‘COBS’) Data
Sub-heading: general COBS data
Sub-heading: monitoring of appointed representatives
A firm has significant responsibilities in relation to an AR it has appointed, which are detailed in SUP 12. In summary, the firm is responsible, to the same extent as if it had expressly permitted it, for anything the appointed representative does or fails to do to do, in the conduct of the business for which the firm has assumed responsibility. It is the firm's responsibility to demonstrate that it has adequate procedures and resources in place to monitor these activities.
By collecting the high-level data required in this subsection, we will be able to gain an understanding of the methods companies use to remain in compliance with the monitoring requirements. This will be used to inform the company's thematic and/or specific work in this area.
Section H: guide for completion of individual fields
Number of advisors within ARs This should be the total of advisory staff across all the firm's appointed representatives. A summary of the firm's responsibilities under SUP 12 is set out under the sub-heading "monitoring of appointed representatives" above. The firm must be able to demonstrate that it has consistently met the requirements in SUP 12.
This is one of the ways in which AR companies can meet their obligations under SUP 12. If the company uses other methods to meet its monitoring obligations under SUP 12, you should state 'yes' here.
Sub-heading: (i) non-investment insurance product information
This information allows us to determine the importance of each type of product for the company and direct thematic work in this area. Regular policy premiums received for the policy need only be reported once as an annual figure in the return for the period covering the date of sale. An annual amount is also required if the policy premium is paid in a single payment.
Sub-heading: (ii) non-investment insurance chains
Product types: The product types in this table are defined in the Interim Prudential sourcebook for insurers (“IPRU(INS)”).
Section J: data required for calculation of fees
