The relationship between financial firms and the FCA is largely centred around the regular submission of reports and data. However, the volume of reporting can, at times, be overwhelming, and it can often feel like the same information is being submitted repeatedly. Wouldn’t it be good if the number of reports were reduced?
The FCA is planning to consult on removing data collection requirements they no longer need, a move they estimate will benefit 16,000 firms.
The FCA is proposing to remove the requirement for firms to submit data related to three different reports and notifications. Well, it is a start! The FCA also plans to remove information from the Handbook about other reporting forms that are no longer required to be submitted. These changes are expected to:
- streamline reporting requirements
- make the Handbook easier to navigate, and
- reduce costs for firms.
In total, approximately 140 pages from the Handbook and Handbook Annexes will be removed. While this may not sound significant, this will be the first tranche of data collections to be removed. The FCA is reviewing others and expect to be able to consult to remove further returns later this year.
As part of this consultation, the FCA is also taking the opportunity to tidy up some of the guidance on reporting and delete guidance about data collections that are no longer used. Forms already marked [deleted] in Annexes to SUP 16 will be fully removed.
Why is this happening?
The FCA and the Bank of England are working together with industry to transform data collection for the UK financial sector. The Transforming Data Collection (TDC) programme, launched in 2021, aims to ensure that regulatory data collections are proportionate to the needs of the regulators.
The TDC began reviewing potential data collection decommissioning in August 2024, supporting the broader strategy of:
- improving reporting requirements
- reducing any unnecessary regulatory burden on firms, and
- supporting growth.
The consultation paper (CP25/8) is the first of what will be a series of CPs on data collections we have identified as suitable for decommissioning.
So, who will this CP affect?
The proposals in this CP will affect a wide range of firms including insurance intermediaries, mortgage intermediaries and retail investment intermediaries. It also includes:
- MIFIDPRU investment firms
- securities and futures firms
- investment management firms
- collective portfolio management firms
- peer-to-peer lenders
- and firms with retail investment advisers, as defined in the Handbook glossary.
If your firm is affected and you wish to provide feedback, you can contact the FCA via the form on their website or by emailing cp25-8@fca.org.uk. The FCA is seeking feedback on the proposals and the consultation questions set out in Chapter 3 and in Annex 1 by 14 May 2025. A policy statement finalising the rules is expected later this year.
The FCA is using a shortened consultation period of 4 weeks. During that time, firms will continue to see the relevant returns scheduled on RegData. The good news is that during the consultation period, the FCA will not be chasing firms that fail to submit the relevant returns and firms can choose not to submit them. Ordinarily, late submissions would trigger automatic late payment fees, but the FCA has confirmed that any such administrative fees will also be automatically waived during this period.
