Regulatory Returns and Financial Activities
This division provides a breadth of services either as a complete package or as individual elements to suit a firm's requirements.
Our areas of expertise and services in this division includes:
Tax Advice Upon Establishing an Entity in the UK
Usually the first issue for individuals to consider when starting a regulated firm in the UK, is whether to be a Limited Company or a Limited Liability Partnership (being the two primary corporate structures of choice). In each case we can provide specific advice (in conjunction with our tax specialist partners) to ensure that the right choice is made dependent on individual circumstances. MPAC Group can further help with the establishment of the entity at Companies House.
Financial Projections and Stress Testing
Part of the initial requirement of a start up firm that intends to be regulated is to produce projected financial information of its forecast profit and loss, balance sheet, cash flows and regulatory capital. We are well versed in such work and can aid you in this area should you require, whether it be for a small firm start up or for a bank start up. We are one of the few firms that are capable of producing sensible, stress tested projections for the banking sector and these can be completed in a cost effective way. Depending upon the risks of the firm, be they real or perceived, we can also provide stress testing work to support the liquidity risk, market, credit and operational risk, capital risk etc and for the ICAAP, as and where applicable.
ICAAPs (Internal Capital Adequacy Assessment Process)
Certain firms within the regulatory regime require an ICAAP to be produced prior to their authorisation, or for that ICAAP to be revised post authorisation on a regular basis. These documents and the financial information that supports them need to be considered carefully as a key and integral part of how the firm manages its risks, and will also be needed to be evidenced to the FCA as required. MPAC can provide an ICAAP for a start up firm, provide a review to ensure that it is up to date, or provide an ICAAP for more complicated firms and banks with consolidation issues and many different streams of business. The supporting number information can be stressed sensibly against the risks and mitigating factors that are applicable to the firm. In more complex situations, we use our actuarial team to provide suitable stress test mathematics to give a more accurate view based upon those analytics.
Regulatory Returns to the Financial Conduct Authority (FCA) via Gabriel
All regulated firms are required to submit periodic returns in Gabriel to enable the FCA to monitor the financial condition of the firm on a solo basis and Groups on a consolidated basis. Since 1st January 2014, a new regulatory category, IFPRU, has been created, incorporating many firms which were previously in the BIPRU category. All IFPRU firms are now obliged to submit certain reports to the FCA, using a) updated and expanded content and b) a new format (XBRL files), which have replaced the old style FSA003 (Capital Adequacy) and FSA008 (Large Exposures) for the majority of firms. MPAC is using a leading software provider's solution to enable IFPRU firms to take the aggro out of collating and submitting their COREP returns to the FCA from the end of March 2014.
MPAC's approach in respect of all regulatory returns is to enable a firm to outsource as little or as much of the regulatory reporting burden as it wishes, irrespective of its regulatory category - PSD, Banks, IPRU-INV, BIPRU or IFPRU. Our services range from us supplying the firm solely with pre-formatted Excel spreadsheets, based upon the Regulatory Reporting Templates which return to us completed, through validating clients' own workings, to collating and submitting the returns on clients' behalf from management accounts or trial balances as provided. This extends across the whole gamut of regulatory returns.
Establishing, Managing and Running an Accounting Function
Newly incorporated firms may not start with a full accounting package and those that do may not purchase the most suitable for their needs. Established firms that are expanding from their initial set up, often require a more sophisticated financial software package to support the financial team. Selection of suitable accounting packages is therefore key and our team knows their way round the most used systems available and can provide guidance to help in selecting a suitable package for clients' growing needs. MPAC can thereafter implement such a package, structure suitable management accounts that are necessary and required by the senior management to manage the finances. We can also provide outsourced part time finance director services until such time as the firm is a position to employ their own. Furthermore we can also provide book keeping services at a level appropriate to ensure efficiency, and comfort that all is working properly.
Structuring Meaningful Management Accounts
The senior management of the firm need adequate management information for them to monitor the financial condition of their company; the management accounts must be sensible and pertinent to suit the senior management requirements. We can set up, structure and deliver such management accounts as required, derived from the accounting package or otherwise. If developed correctly these accounts are an efficient way to deliver suitable information to the firm's auditors and regulator in a timely fashion.
Client Money & Assets
As one of the few firms that specialise in this area of the regulatory sphere, MPAC can provide a range of services from training (to senior management, reconciliation staff and the CF10a CASS operational oversight function), establishing the policy and procedures, arranging the bank trust letters, reviewing the reconciliations and producing the regulatory returns. This can be on an on-going basis, a one off health check or if there is a specific problem that the firm is facing and needs a pragmatic review.