This data item must be completed on a cumulative basis, i.e. a firm that reports 6 monthly should report 6-months' worth of P&L in its half-year return, and a full year's worth of figures in its year-end return.
Appointed Representatives income should only be included in RMA-B1 – Regulated Business Revenue, and only in RMA-B2 Other P&L, as expenditure (Question 8).
B1: Regulated Business Revenue (Questions 1 to 4, and 15)
A. Gross commission must include all commission received by the firm (and its appointed representatives) from all regulated activities (with the exception of commission received from administration activities). Gross commission will include commission that is received and then passed on to another person.
Where commission is shared between two or more firms, gross commission should not be double counted, i.e., each firm should report only the commission it has received.
B. Net commission is the portion of the gross commission retained by the firm (and its appointed representatives).
C. Fees should be recorded as net income from customers or other sources on a fixed fee rather than a commission basis, from all regulated activities.
D. Other income from regulated activities is income that has derived from neither fees nor commission. Examples include interest received from client money accounts or payments made by product providers on a basis other than fees and commission.
E. Regulated business revenue is the sum of commission, fees and other income.
Please note that for retail investment revenue the calculation to be followed is:
Net commissions + fees + other income from regulated activities
To calculate regulated and second (and subsequent) charge mortgage and non-investment insurance revenue, the calculation is:
Gross commissions + fees + other income from regulated activities
The 'total' fields must be the sum of each field in each of the respective columns.
B2: Other P&L
5. Income from other FCA and PRA regulated activities – You should record any income from regulated activities other than retail investment, home finance or insurance distribution activities.
6. Other revenue (income from non-regulated activities) – Gross revenues from the firm's non-regulated activities should be entered here.
7. Total revenue is the sum of total regulated business revenue (4E) + income from other FCA and PRA regulated activities (5E) + other revenue (6E).
8. Total expenditure is the total expenditure of the firm both in relation to its regulated and non-regulated activities (excluding tax). Commissions paid to AR's are recorded here.
9. Profit and loss on ordinary activities before taxation – This figure is produced by deducting the total expenditure from ordinary activities (both regulated and non-regulated) from the total revenue (both regulated and non-regulated). If the firm has not undertaken any extraordinary activities, the formula is simply: total revenue (7E) - total expenditure (8E).
10. Profit and loss on extraordinary activities before taxation - An extraordinary event is a one off event that has either generated a significant profit or loss - examples of an extraordinary activity would be the sale of a building, or the purchase of new premises. This figure should be calculated using the following formula:
Proportion of total revenue obtained as a result of the extraordinary activities - total expenditure caused as a result of extraordinary activities.
11. Taxation - The firm should estimate the tax that it will be payable on its profits, and insert that figure in this field.
12. Profit/Loss for the period before dividends and appropriations – This figure should be calculated using the following formula:
Total revenue (7E) - total expenditure (8E) - taxation (11E).
13. Dividends and other appropriations include dividends paid to shareholders, staff bonuses, wages paid to self (sole trader), etc.
14. Retained profit is calculated using the following formula:
Profit/Loss for the period before dividends and appropriations (12E) - dividends and other appropriations (13E).