The Financial Services Authority’s (FSA) Enforcement Division has started issuing final notices to any dealership that has not completed its RMAR. The final notice withdraws the firm’s permission to transact general insurance business and removes it from the FSA Register.
How, then, do you complete RMAR? What is the difference between “other income (reg. activities)” and “income from other regulated activities”?
It is on the interpretation of such fine points as these that dealerships either complete their RMAR correctly or not.
These Returns have to be completed twice yearly within 30 business days of your year end and within 30 business days of your half year point. Miss these deadlines and you will be in receipt of a £250 administrative charge from the FSA.
The form is not easy to complete and many firms are failing to hit the deadline. FSA has revealed that 4,213 firms have contributed £250 to the FSA already. Do not let yourself fall foul of this. Make sure you are registered with Firms on Line (www.fsa.gov.uk) and that you know when your RMAR will be available to complete.
It is regrettable that the same form is being used for large insurance brokers transacting millions of pounds worth of FSA regulated business and for secondary intermediaries, like car dealerships, whose FSA regulated earnings are small and a fraction of their turnover. FSA really should have provided an easier form for secondary intermediaries to complete that was written in a non-technical , regulatory jargon-free fashion.
Many dealerships will have a year end at the end of the financial year and need to be preparing to complete their first full return (that is sections A through to J, as opposed to just F to H, as was the case at mid-year for many firms first time around).
If you need assistance with the Return please contact Alliance Consultancy on: 01483 475926 (email:enquiries@allianceconsultancy.com).
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