We acknowledge that the FCA seeks to be data-led in pursuit of its objectives. But the increasing volumes of information it seeks does not feel proportionate for our sector and places a significant additional resource and cost burden on our members. Reporting requirements impact the ‘cost to serve’ consumers and may even reduce competition in the market if firms (particularly smaller ones serving their local communities) deem the cost of providing a service outweighs the benefits of providing it.
In its report on the secondary international competitiveness and growth objective, the FCA outlined plans for a pilot framework for decommissioning regulatory data collections that are no longer required, as well as the progressive review and retirement of redundant returns. We believe this is a necessary intervention and should be brought forward at the earliest opportunity.
BIBA gathered intelligence from members on challenges faced with the existing regulatory reporting regime. The information was collated and submitted to the FCA, which included a request for them to deliver 11 key points. We are pleased that five of these points have been or are being addressed, which include the following areas:
1. Consumer credit regulatory returns data – Refer to PS25/3
2. Using consistent dates that match with the month-end or financial year-end – Refer to PS25/3 and CP25/13
3. Continue work with the Bank of England for transforming data – Refer to CP25/16
4. Remove the requirement for intermediaries to attest to product value assessments – REP022 (General Insurance Pricing Attestation) to be decommissioned – Refer to CP25/16
5. Ease the fair value assessment requirements – Refer to CP25/12
6. Streamline the online system – Introduction of My FCA portal and review of Form A
PS25/3: Consumer credit regulatory returns reporting new requirements have been amended from the original proposals introduced. The FCA listened to the feedback received and made some significant changes to help reduce the burden on firms that the original proposals would have created, e.g. reducing the number of questions by 27%.
The regulator plans to replace six existing returns with one single return but has recognised that firms need time to make the initial changes. They are slowing the pace of regulatory change, and now that the new rules are in force, we don’t expect to see proposals for the remaining returns being replaced until the beginning of 2026.
CP25/13: Improving the complaints reporting process is another welcome consultation paper. BIBA and members of our Regulatory Committee have been working closely with the FCA on these proposals that include:
- Consolidating five reports into one single return
- Changing how complaints are categorised
- Focus on consumer duty and vulnerability
CP25/16: Quarterly consultation No 48 introduced proposals for further decommissioning of data in line with the Transforming Data collection (TDC) programme. Within this consultation, the FCA propose to:
- Decommission REP022; and
- Remove the requirement to submit nil returns for REP008 (notification of disciplinary action relating to conduct rules staff (other than SMF managers))
PS25/7 Data Decommissioning: Removing reporting and notification requirements has resulted in the FCA removing some minor reporting requirements and the decommissioning of some returns including:
- FSA039 – client money and assets return – decommissioned
- Section F of the RMAR – removed the need to notify changes of close links and controllers
The 2024 Consultation
on Consumer Credit Regulatory Returns
on Consumer Credit Regulatory Returns