Disclosure of income

What you are referring to here is the Retail Mediation Activities Return. This is a return of more than just financial information, and the frequency with which it is required is dependent on the size of your business.

Any firm with an income (i.e., commission/fee turnover) in excess of £5m will have to provide the return every three months. All other firms will need to supply the information every six months.

As well as profit-and-loss account figures, you will have to confirm that your professional indemnity cover is still in force and meets the threshold conditions, and also of any changes in approved persons. You will have to report on complaints, so ensure your procedure is compliant.

As far as training and competence is concerned, you will have to confirm how many advisers (for retail insurance) have been assessed as competent, and how many supervisors you have.

Although the Financial Services Authority will receive much of its product sales information from insurers, they will require information from you concerning sales volume of certain retail insurance classes and, in particular, where sales are derived from binding authorities and from participation in chains, i.e., using other intermediary schemes. It will also require reports on how you are managing appointed representatives.

The first submission date for reports will depend upon your financial year end, and you will be notified in advance of when reports are due.

However, there are penalties for late submission, so start planning now.

Ian Ritchie, Managing director, RW Associates.