Definition
Standing data is organizational data that is expected to remain unchanged. It’s stored in a computer for a long time and does not require frequent changes.
Standing means to stand in one place. In the context of the article, standing data is standing and does not change with time. It’s permanent and can be referred to later if the information is needed. Examples of standing data include the name and contact address of the company.
This type of data is also referred to as master data/master list.
Explanation Of the concept
Standing data file consists of names of firms, web addresses, contact details, addresses, information about accounting references, auditors, locus, and other data related to accounting.
The data that comes in this category includes these essential features and key points.
- Customer information of the company.
- The product information of the company.
- Employees’ information of the company.
- Pay rates applicable to the company.
- Tax rates applicable to the company.
- Sales tax rates applicable to the company.
- Bank account details of the company.
It’s important to note that standing data is not limited to given information but any information that is not expected to change with time.
Standing Data and Financial Conduct Authority
Financial conduct authority is the UK-based regulator and regulates around 51,000 financial services firms in the Uk. It aims to enhance the credibility of the UK’s financial markets. As part of their duty, they gather relevant standing information and store it in their user management system CONNECT and FCA register.
Specifically, the FCA handbook states that all financial service providers should verify the accuracy of standing data within 30 days of their accounting reference date and make any corrections found to be necessary. Your FCA standing data needs to be updated, in case it’s outdated or changes have been identified, these changes need to be reported to FCA by filing the appropriate form.
Here are the most common fields or examples required for standing data by FCA.
- An agent or representative appointed by the company
- The FCA permissions currently in effect
- Names used for trading
- An individual who is in charge of a controlled functions
- Detailed information of the company
- Business name registered with the government
- The country in which the company was incorporated
- Address of registered company
- The main office of the company
- Website address of the company
- Telephone number of the company
- Contact information for the company’s complaints department
- The name of company address.
- Address and phone number of the main compliance of the company
- The date on which your company’s accounting begins
Please note that the company is responsible for ensuring FCA has the correct information about your standing data within ten days of any changes being made to your company’s standing data, the update needs to be made in the FCA record through CONNECT.
Once updated, in connect, the firm’s standing data is then updated on the Financial Services Register.
Standing data and updates
FCA requires financial firms to verify that their standing data comply with the FCA requirements. Firms are required to submit correct standing data to the FCA within the prescribed period. All Standing data that the user must provide is detailed in Schedule 2 of the FCA regulation.
Further, companies need to update FCA regarding any changes in their standing information. Common examples of the standing data include the company’s representatives, agents, trade names, and other controlled functions.
Controls on Standing Data
The following three are considered to be preventative controls on standing data.
1) Restricted access
Access to standing/master data should be restricted. Only authorized personnel should be given rights to modify/change. So, credential-based access can be an effective solution.
2) Regular back up
Standing data should be backed up on the network regularly. This backup should be performed for all key information that the company maintains.
3) Track changes in company information
Any changes in the company information should be timely updated in the standing data. Although, these changes are expected to be rare and after a long time.
Additional controls on standing data
Further, computer-based accounting systems have application controls related to transactions and standing data. These controls may be manual as well as computerized.
Each of them is specific to a particular application. Its objectives are to ensure that the accounting records are accurate and complete and validate their entries. When a computer-based system is effective, adequate controls will be established at the points of data input, processing, and output as well as over standing data in master files.
Further, From an audit perspective, when determining whether the audit client’s financial statements are at risk of material misstatement, the auditor must identify, document, and evaluate the application controls on the standing and non-standing data.
Likewise, detective controls can include a review of access rights. For instance, if there is a change in the post/authority of the personnel, their access right needs to be updated.
In addition to this, a range of controls can be applied to the standing data including control over the process to input data, account reconciliation, supervisory controls, spreadsheet controls, and segregation of duties, etc.
Conclusion
Standing data is organizational data that is not subject to frequent changes. So, this data is stored in the master file on a computer. It’s also called master data/master file and includes information permanent in nature like name and contact details of the business etc.
Likewise, standing information can be related to the company’s products, employees, representatives, agents, and multiple other details. In the United Kingdom, FCA regulates the financial services industry and requires companies to timely report any changes in their standing data.
Further, the companies need to implement specific preventative controls regarding data entry and update tracking to ensure their standing data is up to date. Likewise, main controls on the standing data include restricted access, regular backups, and tracking of changes.
Frequently asked questions
What are the controls on data entry, and how are these relevant to standing data?
Data entry controls include completeness, validity, reasonableness, sign checks, field checks, etc. Applying these controls helps to ensure that standing data is reliable and can be used for business and regulatory purposes.
What types of controls apply to standing data?
The controls applicable to the standing data include but are not limited to controls on input processing, reconciliations, supervisory controls, and segregation of duties, etc. These controls help to enhance the reliability of data.
What is financial conduct authority?
Financial conduct authority is a financial services regulator in the United Kingdom. It collects and maintains a database for the companies providing financial services in the United Kingdom. So, as part of their regulatory authority, they collect and maintain a database for its information.
Further, their purpose is to ensure consumer protection, promote competition, and introduce honest market policies to regulate the profession.
Does FCA ensure the protection of standing data submitted by companies?
FCA protects data submitted under Financial Services and Markets Act 2000. Further, the purpose of collected standing data is to discharge their statutory duties under legislation. Overall, FCA will not disclose the companies’ personal information without the company’s prior consent.
What are the consequences of submitting wrong data to the FCA?
Submitting misleading information to FCA is a criminal offense under sections 398 and 400 of the Financial Services and Markets Act 2000. Further, there may be disciplinary actions and other legal enforcement on the company.
Who is responsible for ensuring FCA has correct standing data about the company?
The company’s management is responsible for ensuring that FCA has correct standing data if there are some changes in the details like company information, address, contact information, reference date, website address, auditors, and locum details, etc, these need to be reported to FCA.