For many investment firms, regulatory reporting is the only line of regular communication with the regulator.

The IFPR regulatory reporting framework is designed to give the FCA transparency on the key information across all investment firms to allow for comparable data, timely intervention and thematic reviews.

All firms, SNI and non-SNI have the same reporting templates for quarterly balance sheet, income statement and reporting on capital adequacy, liquidity and monitoring metrics.

Data gathering from middle- and back-office is a key component of this as it needs to be efficient to ensure all the relevant workings can be completed for submission within the tight deadline.

Non-SNI firms also have to report quarterly on concentrations risk monitoring and trading book firms have to report quarterly on their concentration risk K-factor.

Firms which are in consolidation groups that have adopted the ‘group capital test’ are required to report quarterly on the capital adequacy of the parent undertakings within the consolidation group.

All investment firms also have two annual reports to make.  Firstly, the ICARA process questionnaire which is submitted in line with the firm’s ICARA process cycle, as nominated by the investment firm themselves.  Secondly, the remuneration data which will require information on the breakdown of pay for Code Staff.

All of these reports are designed to give the FCA information on the way in which investment firms are conforming to the IFPR rules, principally around whether they have sufficient financial resources to meet ongoing requirements and allow them to wind-down in an orderly manner, but the data gather goes beyond this and assist the FCA with their statutory objectives.

Wheelhouse Advisors helps clients with regulatory reporting, either supporting them to do it themselves, or offering a fully outsourced reporting solution.