New reporting rules planned for financial institutions

Banks, building societies and investment firms will face new integrated
regulatory reporting requirements following the issuance of a consultation paper
by city watchdog, The Financial Services Authority.

The new regulations will enable the FSA to use regulatory reporting to more
effectively monitor and mitigate risks to the FSA’s statutory objectives.

The new rules will affect investment managers, securities and futures firms,
operators and trustees of collective investment schemes, venture capital firms
and corporate finance firms.

Graeme Ashley-Fenn, FSA director for contact, revenue and information
management, said: ‘Regulatory reporting is a key FSA supervisory tool for
identifying risk within the FSA’s ARROW framework of risk based supervision.’

He claimed the new rules would make the FSA easier for firms to do business

The FSA aims to give firms a minimum of 12 months’ notice of changes to the
reporting requirements.

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