Compliance Support
| |This page applies to all licenceholders, except in relation to Class 8 activities.
Contents
Other Reporting
Scheduled reporting requirements
Part 2 of the Financial Services Rule Book 2011 “Financial Resources and Reporting” specifies reporting requirements for all licenceholders. Scheduled reports are due on two main cycles – annual and quarterly (a handful of Class 2 licenceholders make a report after six months).
The attached table of reporting requirements covers regular reporting requirements for all regulated activities.
Introduction to Annual Returns
All of the material that is due annually must be submitted within four months after the licenceholder’s financial year end, except for one item:
• Accounts of a parent company under rule 2.11 (where there is a parent company) are due not later than six months after the end of the licenceholder’s financial year. Further guidance is available on this rule.
Sending in the Annual Compliance Return and annual financial returns
Every licenceholder is required to complete an Annual Compliance Return within four months after its financial year end. There are two forms, one for the majority of licenceholders and a short form which is solely for professional officers, licensed under Class 4 or 5.
- Annual Compliance Return: Word document and pdf document
- Professional Officers’ Annual Compliance Return: Word document and pdf document
If you encounter difficulties in using the Word document, please email fsc@gov.im.
The Rules require that a number of items are submitted at the same time as the Annual Compliance Return. We have prepared checklists to assist compliance.
Checklists
There are five checklists, one for professional officers and the other four for companies, which vary according to whether a licenceholder holds a Class 1 (deposit taking) licence and whether it is incorporated on the Isle of Man. The following tables will take you to the appropriate one for your business:
| Incorporated licenceholders | Are you incorporated in the Isle of Man? | ||
|---|---|---|---|
| Yes | No | ||
| Do you hold a Class 1 licence? | Yes | Checklist 2 | |
| No | Checklist 4 | ||
| Professional Officers | Checklist 5 | ||
Please send a copy of the relevant checklist with your return. Whilst it is not compulsory to use the checklist, it should help you to comply and help us to check for completeness. The completeness check is carried out by us on receipt of your return. This is a limited check; any omissions identified during this check will be notified to you promptly. Other questions may arise at a later stage during the Commission’s substantive review of the return.
Please note the checklists are not legal documents, but are produced by the Commission to assist licenceholders to comply with the Financial Services Rule Book 2011. It is a licenceholder’s responsibility to ensure that its regulatory returns are submitted and received by the Financial Supervision Commission by the due date. Submission dates for the regulatory returns are detailed in the individual rules.
Licenceholders are subject to civil penalties if certain returns are not submitted on time. Penalties are based on length of delay and frequency of late submission of financial returns. Please see the Financial Services (Civil Penalties) Regulations 2011.
Quarterly Financial Returns and calculations
All Class 1 licenceholders and many Class 2 and Class 3 licenceholders report using the Financial Reporting System. Class 4 and 5 licenceholders do not use the Financial Reporting System, but should find the material useful, as all except professional officers are required to carry out financial resources calculations.
The document "Procedural Instructions for financial returns" contains information about the calculation of financial returns, extracts from the relevant Parts of the Rule Book and some specific guidance. The document is accompanied by a spreadsheet to assist licenceholders in the calculations. It is primarily relevant to licenceholders in Classes 2 and 3 who report using the Financial Reporting System, but should also assist licenceholders in Classes 4 and 5 and those licenceholders in Classes 2 and 3 who do not report using the Financial Reporting System. The document "Quarterly Prudential Returns" contains information to assist Class 1 licenceholders in the completion of interim returns via the electronic reporting system.
Other quarterly returns
Class 1 licenceholders are notified by the Commission of requirements for statistical returns and Bank of International Settlements (“BIS”) returns. BIS returns are submitted using the attached template:
Rule 8.57 Pricing errors. Class 3 licenceholders notify the Commission of pricing errors in collective investment schemes within 15 business days after the end of each calendar quarter, using the CIS error reporting form.
Other Reporting
Class 2 and Class 3 have additional requirements and the below returns should be made on a half-yearly basis.
Rule 6.75 - Provision of statistical information
- Class 3 fund managers and administrators use the CIS statistics reporting spreadhseet to provide statistical information. The spreadsheet should be returned within 15 business days after the end of each calendar quarter;
- Class 4 licenceholders which provide services to closed ended investment companies also use the CIS statistics reporting spreadsheet to provide statistical information. The closed ended investment company tab should be completed and returned within 15 business days after the end of each calendar quarter;
- Class 2 investment managers and stockbrokers and Class 3 asset managers and custodians/trustee use the Class 2 and 3 statistics reporting spreadsheet to provide statistical information on a six-monthly basis. The spreadsheet should be returned within 15 business days of the last day of June and December.
Rule 8.57 Pricing Errors
Class 3 licenceholders notify the Commission of pricing errors in collective investment schemes within 15 business days after the end of each calendar quarter, using the CIS error reporting form.
Ad-hoc notification and consent requirements
As well as structured periodic returns, licenceholders are required to inform the Commission of various events, either on a notification basis, or requiring prior consent before an action can proceed. The attached Rule Book consent and notification summary table, summarises the requirements.
Maintaining policies and registers
The attached Rule Book obligations to maintain policies and Rule Book obligations to keep registers summarise the requirements.
The Commission has prepared templates which licenceholders may use if they wish. These are not statutory documents and their use is not obligatory.
Money Laundering Reporting Officers can find templates for a register of disclosures and a register of enquiries from the authorities in the Anti Money Laundering Handbook at Appendix J, Appendix K and Appendix L.
