We have changed the RMAR (SUP 16) to incorporate additional data needed to support supervision of adviser and consultancy charging rules, which came into effect on 31 December 2012. The data will allow us to monitor and challenge the way that firms are implementing our new rules.
The changes are:
- a new section (Section K) that requires firms to provide data on adviser charging revenue, payment methods, client numbers and charging structures
- a new section (Section L) that requires all firms that provide services on group personal pension schemes (GPPs) (including a group SIPP) and group stakeholder pension schemes to provide data on consultancy charging fees, payment method, employer client numbers and charging structures
- minor changes to Section B (profit and loss account) and Section G (training and competence) to reflect the new definitions of adviser charging, consultancy charging and independent and restricted advice
Firms that do not have permission to give a personal recommendation on a retail investment product (or provide related services such as arranging or executing a transaction) will not be required to report adviser or consultancy charging data in either Section K or L of the RMAR.
If an investment manager provides a personal recommendation on a retail investment product (or provides related services), they will be required to supply data on adviser and/or consultancy charges depending on their business activities.
Where a firm has a management charge which covers adviser charges and charges for services that do not relate to a personal recommendation on retail investment products, they will not be required to distinguish between these charges when completing Section K.
The timing and frequency of a firm’s current reporting requirements in completing their RMAR has not changed. Firms will not have to submit their first report for the new data requirements until their first full reporting date after 31 December.
Frequently asked questions for Retail Mediation Activity data items.