Stockbrokers Revenue Analysis Report Guidance Note

Transcription

1 2012 Stockbrokers Revenue Analysis Report Guidance Note

2 1 Stockbrokers Revenue Analysis Report Guidance Note General 1. The Stockbrokers Revenue Analysis Report is applicable to all investment firms authorised under S.I. No. 60 of 2007, the European Communities (Markets in Financial Instruments) Regulations 2007 and who are members of the Irish Stock Exchange. Throughout this guidance note these firms will be collectively referred to as firms. 2. This guidance note provides direction on how to complete the Stockbrokers Revenue Analysis Report and specifies definitions for the fields contained within the return. It may be updated periodically and the most up-to-date version will be available on the Central Bank of Ireland ( Central Bank ) website Firms should submit the Stockbrokers Revenue Analysis Report alongside their FINREP to the Central Bank via the Online Reporting System. 4. The sum of Total Commission entered in Section A and the Total Fee Income in Section D must equal the amount of Fee & Commission income input in field on Table 2 Income Statement of the FINREP tables in order to be signed off. Please see Appendix 2 of the FINREP guidance notes on how firms should approach rounding All amounts are to be entered in euro thousands. Foreign currencies are to be converted to euro using the exchange rates published on the Central Bank of Ireland website on the last working day of the quarter ( 6. Firms should record their financial performance for the reporting period i.e. the financial performance for the quarter ending on the reporting date and not the year to date results. 7. The Stockbrokers Revenue Analysis Report is depicted in Appendix If firms have any queries in relation to the Stockbrokers Revenue Analysis Report or the content of this guidance note, they should contact their supervisor. Section A Commission Breakdown (if applicable) 9. Section A applies to firms who earn commission. Firms who do not earn commission should leave Section A blank. 10. Commission refers to the amount paid in addition to the price of the security and all applicable regulatory fees for executing a trade on behalf of a client (including give-up commission)

3 Stockbrokers Revenue Analysis Report Guidance Note Institutional Commission is commission earned from Professional Clients and Eligible Counterparties, as defined in S.I. No. 60 of 2007, the European Communities (Markets in Financial Instruments) Regulations Private Client Commission is commission earned from Retail Clients as defined in S.I. No. 60 of 2007, the European Communities (Markets in Financial Instruments) Regulations Total Commission is commission earned on Irish Equities + Overseas Equities + CFD s + Government Bonds + Corporate Bonds + Other, where; Irish Equities = securities with an Irish ISIN Overseas Equities = securities with a non-irish ISIN CFD = all contracts for difference Government Bonds = bonds issued by sovereigns Corporate Bonds = all other bonds Other = all other commission Section B Commission - Top Ten Analysis (if applicable) 14. Section B Commission Top Ten Analysis applies to firms who earn commission, as defined above. Firms who do not earn commission should leave Section B blank. 15. Institutional Commission Top Ten Stock = commission earned in the top ten financial instruments, in ascending order. (Note: for unlisted securities the ISIN field should be left blank). Top Ten Client = Total Commission earned from the top ten Professional Clients and Eligible Counterparties, in ascending order. (Note: where dealing occurs across multiple accounts, for the same client, it is to be treated as one client). 16. Private Client Commission Top Ten Stock = commission earned in the top ten financial instruments, in ascending order. (Note: for unlisted securities the ISIN field should be left blank). Top Ten Client = Total Commission earned from Private Clients, in ascending order. (Joint, Pension and Corporate Accounts are to be treated separately). Section C Proprietary Trading Breakdown (if applicable) 17. Section C Proprietary Trading Breakdown applies to firms who are authorised for dealing on own account. All firms who do not carry out proprietary trading should leave Section C blank. 18. Proprietary Trading is defined as gains or losses made on own account trading.

4 3 Stockbrokers Revenue Analysis Report Guidance Note 19. Total Proprietary Trading is comprised of trading in Irish Equities + Overseas Equities + CFDs + Government Bonds + Corporate Bonds + Other and Market Making activities where; Irish Equities = securities with an Irish ISIN Overseas Equities = securities with a non-irish ISIN CFD = all contracts for difference Government Bonds = bonds issued by sovereigns Corporate Bonds = all other bonds Other = all other proprietary trading gains and losses Market Making = income made from market making activities Section D Fee Income (if applicable) 20. Section D Fee Income applies to all firms who earn fee income. Any firms who do not earn fee income should leave Section D blank. 21. Fee Income is defined as any fee charged to a client, in relation to the provision of any service, excluding commission. 22. Total Fee Income is comprised of Fund Management Fees + Corporate Advice Fees + Other Income, where; Fund Management Fees = Management or similar fees from UCITS, non-ucits Funds and include private client advisory and portfolio management fees Corporate Advice Fees = Fees received by the stockbroking firm from Corporate Finance mandates and similar engagements Other Fee Income = All other fee income 23. Please state the amount of Funds under management from which Income was earned Income is defined as Fund Management fees 24. Please state the number of individual projects from which Income was earned Income is defined as Corporate Advice fees.

5 Stockbrokers Revenue Analysis Report Guidance Note 4 Appendix 1 Stockbrokers Revenue Analysis Report

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