Product sales data must come from providers not intermediaries, says Peter Cardinali
Modernising the way firms report to the FSA will be a major exercise. But the idea that intermediaries will have to report information to the FSA about each product sale they carry out is wrong. Product providers - not individual intermediaries - will have to report quarterly data on product sales to the FSA under proposals set out in CP197.
This misunderstanding has probably arisen because CP197 also proposes reporting requirements for intermediary firms, known as the regulated retail activities requirements. These requirements relate to matters such as financial resources and complaints, however, and do not involve direct product sales reporting.
The move to electronic reporting will also be a substantial task and the FSA is calling on the software industry to help with this.
Last month, 30 leading software suppliers gathered at the FSA to discuss the switch to electronic regulatory reporting.
The FSA is asking the software industry to set up a small advisory group to work with it to help develop its thinking and facilitate the move to electronic reporting.
A follow-up seminar is planned for Monday 10 November to further discuss mortgage and general insurance proposals for electronic reporting and to outline developments relating to the FSA's pilot of the IS infrastructure to support regulatory reporting.
To book a place please call 020 7066 0098.