11. How are reports made to FCA?

11.1. General requirement to report via an Approved Reporting Mechanism

Transaction reports are to be made via Approved Reporting Mechanisms (ARMs). A list of ARMs which a firm may use to make its reports is available from the FCA website.

11.2. How the firm submits its transaction reports to the FCA

All the firm’s transaction reports (Cash equity, fixed income, ETDs and derivatives) are submitted to UnaVista, the LSE’s ARM.

11.3. Who is responsible for ensuring the accuracy of Transaction Reports?

It is the reporting firm’s responsibility to ensure the accuracy of the information contained in a transaction report and the firm must ensure they are successfully provided to the FCA.

To ensure successful submission and accuracy of the transaction reports regulated firms are required to have in place appropriate quality assurance measures. Within the firm, this role is fulfilled by CRU who operate an extensive quality assurance process which includes regularly obtaining samples of transactions directly from the FCA to test they are a complete and an accurate reflection of what was originally submitted to the ARMs.[1]TRUP v3, section 10; SUP 17.3.6G

11.4. Record keeping obligations

The firm must keep at the disposal of the FCA, for at least 5 years, the relevant data relating to all transactions in financial instruments which it has carried out, whether on own account or on behalf of a client. In the case of transactions carried out on behalf of clients the records are required to contain all the information and details of the identity of the client.[2]SUP 17.4.3R As such full details of all transaction reports made to the ARM and accompanying response files should be maintained for a period of 5 years.

The requirement to keep information at the disposal of the FCA means that a firm should maintain that information in such a format that it can readily be gathered and transmitted to FCA upon request. Where more than one firm has given effect to a transaction each firm should have been considered to have carried out the transaction for the purpose of the data retention rules even in situations where only one firm makes a transaction report.[3]SUP 17.4.4G

Firms should also maintain details of the operation of the control framework for transaction reporting. This means that details of the governance, control and testing processes must be maintained. As such meeting minutes for governance forums at all levels should be maintained as well as the details and results of any testing carried out as this will enable the firm to evidence the operation of its control framework.

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1. TRUP v3, section 10; SUP 17.3.6G
2. SUP 17.4.3R
3. SUP 17.4.4G