FCS BS - Record Keeping and Reporting

Question 1

Record keeping requirements

Answer 1

Client Categorisations

• Indefinitely for pension transfer, opt out
• Length of contract for MiFID, life, pension contracts
• 3 years for other regulated business

Suitability

• Indefinitely for pension transfer, opt out
• 5 years for MiFID, life, pensions
• 3 years for other regulated business

Investment Orders

• records of every order and portfolio management dealing decision
• 5 years
• indefinitely for pension transfer and opt out

Question 2

Occasional Reporting

Answer 2

Where a firm has carried out an order in course of designated investment business (except where managing investments)

In case of retail client, send a notice of execution of order by durable medium no later than the following business day

Question 3

Periodic Reporting

Answer 3

Where a firm manages investments on behalf of clients

In case of retail client, must provide periodic statement once every 6 months (or every 3 months at client request)

If a leveraged portfolio, every 1 month

If losses exceed predetermined threshold, must report end of business day it was exceeded, or end of next business day if exceeded on non-business day

Question 4

Reporting information about authorised funds to unitholders

Answer 4

1. Prepare short and long report every half year and annual accounting period
2. Send short report to all unitholders
3. Make long report available on request

Question 5

Short vs Long Reports to unitholders of authorised funds

Answer 5

Short

• strategy/risks/fund manager info
• overview of fund

Long
- accounts and reports by fund manager / depository / auditor