HMFSA4300 - Movement guarantees: Do we offer reductions on existing movement guarantees?

Yes – Principals may apply for reductions in the size of their existing guarantee. They can do this by writing to the Financial Securities Centre (FSC) stating the grounds for their request.

Should the FSC receive such requests they will forward them on to the Regional Risk Manager or Client Relationship Manager for local action.

What happens next?

Subject to meeting certain criteria, Principals to securities may apply for reductions in the size of their guarantees. The requirements are:

• The Principal has provided security for the previous two consecutive years. No claim has been made against the security by HMRC and no significant irregularity has been identified in respect of movements covered by the security. The level of the security would be reduced by 50%.
• The Principal has provided security for the previous four consecutive years. No claim has been made against the security by HMRC and no significant irregularity has been identified in respect of movements covered by the security. The level of the security would be reduced by a further 50% (i.e. 25% of the original level of security) – see HMFSA4350 for further conditions