Frequently asked questions

MER is Mandatory Electronic Reporting which was consulted on in CP198 'Regulatory Reporting – a new integrated approach', published in September 2003. MER is one component of the FSA's Integrated Regulatory Reporting (IRR) Programme.

MER will deliver a strategic data system, called GABRIEL (GAthering Better Regulatory Information ELectronically), for the collection, validation and storage of regulatory reporting data. The data collected by GABRIEL will then be used by our supervisors to monitor and analyse both the firm population and market sectors more effectively and efficiently.

Mandatory Electronic Reporting will affect the majority of regulated firms that submit data to us. Each set of regulated activity reporting requirements will be integrated into the new reporting system sequentially, along with accompanying rules which will oblige submissions to be electronic.

Credit Unions are not required to submit data relating to Credit Union activities electronically, but the option to do so will be made available. However, if a Credit Union also conducts other regulated activities, it will be required to submit the 'non-Credit Union activities' data electronically.

Credit Unions were exempted from MER due to the specialist, often charitable, nature of most credit unions and the impact of technology resourcing on these often not-for-profit organisations if we were to apply MER. However, if a Credit Union starts to do activities other than deposit taking then they would have to submit the reporting for these additional activities electronically e.g. if they started to do retail investment activities then they would have to send in the non-financial parts of the RMAR.

Yes - the only firms that are exempt from MER are Credit Unions All other firms will be required to submit electronically.

Historically the FSA has monitored firms' business based on firm 'type' rather than the activity carried out by this firm. This method is outdated however as many firms nowadays carry out a number of different activities. The FSA made the decision to move towards activity-based regulation in a series of consultation documents including CP198 and PS04/8. The new ARROW supervisory framework has been modified to take into consideration the FSA's shift towards activity based reporting.

We recognise that the MER solution is a large and complex development. We therefore propose to reduce the impact and risk to both the firms and ourselves by phasing the implementation of MER based on activity based reporting.

Our current plan is to introduce Credit Institution and Investment Activity reporting first followed by the other regulated activities. Once this is agreed we will make the implementation timetable available publicly.

Credit Institutions and certain Investment Firms should also refer to the question on early reporting below.

We issued a Consultation Paper (CP) in May 2006 relating to proposed new reporting for credit institutions and certain investment firms. The CP covers new financial reporting for firms subject to the Capital Requirements Directive – CRD (credit institutions and some investment firms) and Markets in Financial Instruments Directive – MiFID, and firms not subject to either EU Directive. It also includes proposals for non-financial data to be reported by firms undertaking investment activities (excluding retail investment activities).

The CP proposes that Mandatory Electronic Reporting (MER) will be introduced for the reporting covered by this CP, to be achieved in phases as mentioned above.

Early Reporting is the transitional reporting for firms subject the Directives listed above who have the option to move to the new reporting method as early as January 2007.

Further information is available on the reporting updates page.