The extension comes as further problems surfaced over firms trying to submit their reports to the FSA. Firms are required to submit their returns via the regulator’s ‘Firms Online’ system. Currently being used predominantly by the larger firms, the site automatically ‘greys out’ the areas that aren’t relevant for the firm to fill in.
However, Mortgage Introducer has been informed that firms have been unable to access these forms online.
One source said: “Mid-last week, firms could not get access to these forms. You have to ask what exactly is going on. It is mainly the larger firms that have been affected by this.
:Many of the smaller ones are not due to submit their reports yet. This extension to the deadline shows that the FSA is aware of the problems. I hope it has been sorted out so we know the market is running like it should be.”
The extension to the RMAR deadline will vary dependent on when the firm was initially due to submit its return.
One firm, which was due to submit its report by 11 August 2005, has now been granted an extension to 9 September 2005. In an e-mail sent to the firm, the FSA said: “This is the first time the FSA has introduced tailored electronic returns and, as with any new system, there are some teething problems which we are working hard to resolve.
“We also realise this is a significant change for firms and we want to do as much as possible to help them submit their returns on time. In recognition of this we have decided to extend the due date.”
But it added: “We will closely monitor the submission rates of firms and the effectiveness of the system on an ongoing basis. As we all get used to electronic reporting we believe that it is highly unlikely that in future we will offer extensions to the normal deadlines for submitting returns.”
It also warned that failure to submit the reports by the new deadline will result in the firm being charged an administrative fee of £250. The FSA is also entitled to take enforcement action if a firm fails to submit a return.
London-based sole broker Roy New was due to submit his report this week but said the extra 30 days he has been granted by the FSA has been welcomed. “It’s fantastic that we have this extra time. It will benefit a lot of brokers.”
Sam Bennett, spokesperson at the FSA, said: “We are exercising some flexibility on this. This is mostly in recognition of the fact there has been some problems online but we are working to fix them.”
