HM Treasury has published ‘The Capital Requirements (Country by Country Reporting) Regulations 2013’.
The draft stems from Article 89 of the Capital Requirements Directive and impacts on all ‘institutions’ – basically investment firms and credit institutions that are subject to CRD IV.
The Regulations require each institution to publicly disclose annually on a consolidated basis for the financial year, for each country where they have an establishment:
- Name, nature of activities and geographic location
- Number of employees
- Pre-tax profit/loss
- Corporation tax paid
- Any public subsidies received
The disclosure – which should be in the institution’s annual financial statement where possible – has to be made before 31 December 2015 and annually thereafter. However all institutions have to disclose the information in a, b & c above for the first time on 1 July 2014. Global systemically important institutions authorised in the UK have to report, on a confidential basis, the information in d, e & f above to the EC and to HMRC on or before 1 July 2014. The EC will assess the potential negative economic consequences of the public disclosure of such information and should any be identified then a deferral of the disclosure obligations may be put in hand.