FPCOB 15.8 Calculation of annual income

A firm’s annual income refers to all income received or receivable, whether arising from the firm’s permitted activities or not, as reported in its most recent audited annual financial statements.

If the firm’s most recent annual financial statement does not cover a 12-month period, the annual income is taken to be the amount in the statement converted, proportionally, to a 12-month period.

If the firm does not have annual financial statements, the annual income is to be taken from the forecast or other appropriate accounts which the firm has submitted to the FCA in accordance with its reporting obligations in SUP 16.12.

If a firm is a principal, its annual income includes amounts due to its appointed representative in respect of activities for which the firm has accepted responsibility.

If a firm is a network, it should include the relevant income due to all of its appointed representatives in its annual income.