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. This should be the total credit in the company's customer cash accounts on the current refund date.
This should be the sum of any debits to the firm's customer money account(s) on the current return date. Is the company exempt from these capital resource requirements in connection with any of its retail intermediation activities. The company must state here whether exceptions from the handbook apply in relation to the capital resource requirements in MIPRU or IPRU(INV) 13.
If the company has increased the excesses or exclusions of its PII policies, the total requirements for additional capital resources required by IPRU(INV) 13.1 should be recorded here. Expenditure based claim The claim is calculated as 1/4 of the company's ongoing annual expenditure as required by IPRU(INV) 13.3.2R(1). If the company has increased the excesses or exclusions of its PII policies, the total amount of additional capital resources.
Capital Resources Surplus/Deficit This should show the amount of the company's capital resources relative to its capital resources requirements. Enter "n/u" only if the business is exempt from PII requirements for all regulated activities that are part of the RMAR. Enter "n/u" only if the company is exempt from PII requirements for all regulated activities that are part of the RMAR.
The firm must select the name of the insurance company or Lloyd's syndicate providing cover. This must be the income as stated on the firm's most recent PII proposal form. An overseas firm must notify the FCA of any of the following events in relation to the firm:.
Total number of all employees. This should be the total number of employees who worked in the company at the end of the reporting period. Select Other if none of the categories apply to the company's activity, e.g. The total number of ARs for which the company has regulatory responsibility at the end of the reporting period.
This should be the total of advisory staff across all the firm's appointed representatives.
Significant', in this context, is when the premium collected in respect of the business that is part of a chain amounts to (a) more than 40% of the premium collected for the entire non-investment insurance business, or (b ) more than 40% of the premium collected for the entire retail business in a given product; and (3) whether, in relation to this business, the firm dealt directly with the customer during the reporting period (ie was the first intermediary in the chain). Subheading: (iii) Treatment as an agent for non-investment grade insurance contracts This section covers transactions with retail customers by firms with delegated authority (eg where the firm may underwrite risks on behalf of the insurance undertaking without further reference to to the insurance company). Firms must present the overall volumes and value of this business, and indicate which products they have traded.
Significant', in this context, is when the premium collected in respect of the business where the firm is treated as an agent amounts to (a) more than 40% of the premium collected for all non-. Again, this enables us to ascertain the importance of this business to the firm and target thematic work in this area. The activity of 'assisting in the administration and performance of an insurance contract' includes handling claims on behalf of customers and this section aims to capture information on claims handling that is not collected from product providers as part of the PSD.
This enables us to ascertain the importance of this activity for the company and target thematic work in this area. Companies should be aware that where claims are handled only on behalf of an insurance company, this is not a regulated activity. This information is required because data on business placed through Lloyd's is not collected as part of product sales data.
To close the gap, this section requires Lloyd's brokers to provide information on the percentage of income earned by their regulated activities that is derived from retail, commercial and reinsurance business. This information is used together with product sales data to inform our thematic monitoring work.
A.4AAG
Number of retail customers who start paying for ongoing advisory services during the reporting period (row 13). Firms should report the number of retail clients that have begun paying for an ongoing advisory service (i.e. ongoing advisory fees) within the reporting period. Number of retail customers who stop paying for ongoing advisory services during the reporting period (row 14).
Firms must report the number of retail clients who paid an adviser fee for ongoing advice during the reporting period but stopped paying for ongoing advice by the end of the reporting period. In completing rows 12 through 14, some firms may find it easier to report the number of ongoing advisory agreements with retail clients rather than the number of retail clients receiving ongoing advice. For example, if a firm has a single advisory agreement with a couple, this agreement may be reported as '1' on the return, although, in reality, two retail clients are receiving advice.
If the adviser fee structures typically offered are split evenly between the different fee types (hourly, percentage of investment, flat fee or combined) for initial and/or ongoing advisory services, answer 'yes' for the fee structures that are relevant. Where a firm charges different hourly rates depending on which individual in the firm undertakes work on behalf of the retail client, firms should ensure that their typical fee structure reflects as closely as possible the total adviser fee that the retail client will pay. So, for example, where it is unlikely that a retail client could simply pay for one hour of a paraplanner's time, as an adviser would always need to be involved to provide a personal recommendation, it would be misleading to use the paraplanner's quoting hourly rate as the minimum hourly adviser charge charged by the firm.
Instead, the minimum fee should be based on the total advisor fee payable for the service as a whole. The data in this section may be based on the company's published tariff or price lists for publishing the cost of advisory services to retail customers and will only require updating as and when the tariff is updated (although companies are required to resubmit this data each reporting period). If a retail client accepts an initial adviser fee for a retail investment product for which there is a regular contribution instruction and the adviser fee is to be paid in installments, to complete lines 15 to 22 firms must report the total adviser fee, even if advice is paid over different reporting periods.
The firm provides advice on a retail investment product where regular contributions are paid, with a 2% advisory fee payable in three equal installments over different reporting periods. Similarly, if the consultant's cost was £600 as a fixed fee paid in three equal installments over different reporting periods, the consultant's cost would be £600.00 for the purposes of completing line 17. Where ongoing consultancy costs are payable more often than once a year (eg ongoing consultancy costs are payable monthly, quarterly or semi-annually), the annual amount owed by small clients should be reported on lines 20 and 21.
