Background Part 1 – Regulatory Framework Requirements of category 1 regulators Section 12 – Annual reports of category 1 regulators
49.This section requires a category 1 regulator (or, where it has non-regulatory functions, its regulatory committee) to prepare an annual report on the exercise of its regulatory functions. Subsection (2) sets out a range of material that must be contained in the report including information relating to compliance with the regulatory objectives, strategic priorities, accounts, payments from its compensation fund, the number of conduct and regulatory complaints remitted to it under the 2007 Act (and the number of those complaints that are determined, discontinued or reinstated by it or its regulatory committee), information about any directions given under section 20 to disapply rules, and details of the steps it has taken in relation to its regulated providers.
50.Where the category 1 regulator has a regulatory committee, the report must contain relevant information about the committee’s internal governance arrangements and the relationship between the committee and the regulator’s governing body. Subsection (3) places a duty on the regulator to make information available to the committee for the preparation of the report.
51.When preparing an annual report, the regulator or committee (as the case may be) must consult the independent advisory panel of the Commission.(5) A category 1 regulator or its regulatory committee must also publish a copy of the report and send a copy to the Lord President.