Compliance with FCA’s Mandatory Annual Update using Connect
How the new rules impact you
Amongst the prevailing Brexit bulletins, we remind firms that the FCA remains committed to enhance consumer protection and supervision of the UK's financial services sector. This means, the regulator continues to review and amend rules to achieve its objectives.
As a result, from January 2020, firms must submit a 'mandatory annual update' using the Connect system, attesting to the accuracy of their firm's details.
If you do not comply with the rules, you will be in breach of enhanced firm details rules and the principles for businesses.
In December 2018 the FCA issued a quarterly consultation (CP18/39) in which they proposed to make amendments to SUP16.10. In particular, the FCA wanted to strengthen the requirement for firms to carry out an annual ‘accuracy check’ and to require all firms to submit updated Firm Details (also known as Standing Data) using the Connect system.
Following the consultation, the rule changes has been implemented and as a result, firms are required from January 2020 to review and confirm the accuracy of firm details annually (the mandatory annual update). In line with the Accounting Reference Date (ARD), firms will have 60 business days to confirm such details.
What you will need to do
If you have not done so, please register for Connect (here). This is now mandatory to communicate with the regulatory seamlessly. If you need any assistance with registering for Connect, you can find additional support on the FCA’s website or you can contact us at any time.
Important: even if your firm's details remained the same throughout the year, now it is mandatory to log on to ‘Connect’ and confirm this.
"[...] [FCA] will consider using our full regulatory tools, including enforcement. All firms must [...] meet the principles for businesses."
From FCA's website available here
We can provide you with a free checklist to review your arrangement. Just simply get in touch and request a copy.
However, if you have any questions about how the new rules impact you, your firm or merely have a question, please feel free to get in touch.