• INMA Chapter 2 INMA Chapter 2 Prudential reporting requirements

    • INMA 2.1.1 Introduction

      (1) This Chapter sets out the prudential reporting requirements for an INMA firm.
      (2) Prudential returns of an INMA firm must reflect the firm’s management accounts, financial statements and ancillary reports. An INMA firm’s returns, accounts, statements and reports must all be prepared using the same standards and practices, and must be easily reconcilable with one another.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 2.1.2 Preparing returns

      (1) An INMA firm must prepare the prudential returns that it is required to prepare by notice published by the Regulatory Authority on an approved website. Such a notice may also require INMA firms to give other information to the authority.
      (2) The firm must give the return to the Regulatory Authority within the period stated in the relevant notice.
      (3) The Regulatory Authority may, by written notice:
      (a) require a firm to prepare additional prudential returns;
      (b) exempt a firm from a requirement to prepare annual, biannual, quarterly or monthly returns (or a particular return); or
      (c) extend the period within which to give a return.
      (4) An exemption may be subject to 1 or more conditions. The firm must comply with any condition attached to an exemption.
      (5) The firm must prepare and give prudential returns in accordance with the Regulatory Authority’s instructions. The instructions may require that the return be prepared or given through the authority’s electronic submission system.
      (6) The instructions may be set out in these rules, in the return itself, in a separate document published by the authority on an approved website or by written notice. These instructions, wherever or however they are given, are collectively referred to as instructions for preparing returns.

      Note Instructions might be in the form of formulae or blank spaces that the firm must use or fill in and that automatically compute the amounts to be reported.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 2.1.3 Giving information

      (1) The Regulatory Authority may, by written notice, require an INMA firm to give it information additional to that required by these rules.
      (2) An INMA firm must give information to the authority in accordance with the authority’s instructions and within the period stated in the notice. The authority may extend the period within which to give the information.
      (3) The authority may exempt an INMA firm from giving information. The firm must comply with any condition attached to an exemption.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 2.1.4 Accounts and statements to use international standards

      (1) An INMA firm must prepare and keep its financial accounts and statements in accordance with AAOIFI, IFRS, US GAAP or other accounting standards approved in writing by the Regulatory Authority.
      (2) If the firm decides to prepare and keep its financial accounts and statements in accordance with a standard other than the one it has previously used, it must notify the authority in writing before beginning to do so.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 2.1.5 Interaction between these rules and IMEB

      (1) A prudential return must be signed by 2 individuals.
      (2) If the individuals approved to exercise the finance function and the senior executive function for the firm are available, they must sign the return. If either or both of those individuals is or are unable to sign, the return must be signed by 1 or 2 of the individuals approved to exercise the following functions:
      (a) the risk management function;
      (b) the compliance oversight function;
      (c) the executive governance function.
      (3) In subrule (2), finance function, senior executive function, risk management function, compliance oversight function and executive governance function mean the functions described in CTRL, Division 1.2.B.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015)
      Amended by QFCRA RM/2021-1 (as from 1st July 2021).

    • INMA 2.1.6 Firm to notify authority

      (1) If an INMA firm becomes aware, or has reasonable grounds to believe, that the firm has breached, or is about to breach, a requirement of these rules:
      (a) it must notify the Regulatory Authority orally about the matter immediately, but within 1 business day;
      (b) it must confirm the oral notification by notice to the authority by no later than the next business day; and
      (c) it must not make any distribution to its shareholders or members, whether by way of dividends or otherwise, without the authority's written permission.
      Note Business day and writing are defined in the glossary.
      (2) In particular, an INMA firm must notify the authority as soon as practicable of:
      (a) any breach (or foreseen breach) of the firm's obligation to maintain a particular level of net liquid assets; or

      Note For the requirement to maintain a particular level of net liquid assets — see rule 3.3.4.
      (b) any concern (including because of prospective losses) about whether its financial resources are adequate.
      (3) The firm must also notify the authority of any measures taken or planned to deal with any breach, prospective breach or concern.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 2.1.7 Branches — obligations to inform Regulatory Authority

      (1) This rule applies to an INMA firm that is a branch.
      (2) The Regulatory Authority may require the firm to give it a copy of any report that the entity of which the firm is a branch is required by law to make to its home financial services regulator.
      (3) If the entity breaches (or expects to breach) a prudential requirement set by law or by its home financial services regulator, the firm must immediately notify the Regulatory Authority and must give the authority copies of any relevant documents (including documents submitted to that financial services regulator).

      Note Home financial services regulator is defined in the glossary.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).