The Financial Services Authority banned 151 small firms from carrying out regulated activities in 2006/07.
The majority (91) were banned because they failed to submit their retail mediation activities return (RMAR), despite being reminded to do so.
The RMAR is a set of data requirements which form the basis of small retail firms’ electronic reporting to the FSA and it must be submitted every six months.
Failure to submit the RMAR is a breach of threshold condition four, which requires the FSA to ensure firms have adequate resources, and threshold condition five, under which firms must satisfy the FSA they are fit and proper to carry on regulated activities.
Stephen Bland, director of small firms at the FSA, says: "The action we take against firms who do not comply with our minimum standards and our tough stance on firms' continued failure to submit the RMAR is working. Ensuring that firms implement and maintain these conditions is a priority for us. While our main emphasis is on helping firms to correct problems where possible, we take appropriate action when firms fail to comply with the conditions."
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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