The Financial Conduct Authority (FCA) has unveiled a proposal to streamline reporting obligations by decommissioning three regular data returns: Form G (Retail Investment Adviser Complaints Notifications Form), FSA039 (Client Money and Assets Return), and Section F of the Regulatory Reporting Return (RMAR). This initiative is part of the FCA's broader strategy to modernise regulatory systems and alleviate burdensome requirements for firms.

Background: Transforming Data Collections Programme

These proposed changes align with the FCA’s Transforming Data Collections Programme, conducted in collaboration with the Bank of England. This programme, initiated in 2020, aims to enhance the data collection, processing, and utilisation practices of regulators. The focus is on collecting high-value data while reducing unnecessary reporting burdens on firms.

Scope of CP25/8

The consultation paper CP25/8 suggests removing:

• Form G: Used for gathering complaints data about retail investment advisers.
• FSA039: Required firms to report client money and assets.
• Section F of RMAR: Provided firms' activity data for regulatory oversight.

These changes would impact approximately 16,000 firms across various sectors, including insurance companies, mortgage and retail investment intermediaries, MiFIDPRU investment and securities firms, peer-to-peer lenders, and investment management firms.

Rationale for Decommissioning

The FCA has determined that these returns are obsolete and often duplicate existing reporting frameworks. Eliminating them is expected to reduce reporting burdens and simplify the FCA Handbook, thereby clarifying compliance requirements for firms.

Consultation Process and Timeline

The CP25/8 consultation is open until 14 May 2025. During this period, firms can discontinue filing these returns without penalty. The FCA encourages stakeholders to review the consultation paper and submit feedback through its online form or via email.

Stakeholder Perspectives

While many in the financial sector welcome the reduction in reporting obligations, some express concerns about potential data gaps and the challenges firms may face in adapting to the changes. The FCA acknowledges these concerns and emphasises the importance of feedback to ensure a smooth transition.

Implications for Firms

Firms are advised to assess how the proposed changes will affect their internal systems and compliance workflows. This development represents a significant shift in regulatory reporting and may pave the way for further simplifications in the future.

Conclusion

The FCA’s CP25/8 consultation marks a pivotal step toward modernising regulatory reporting. By eliminating low-value data returns, the FCA aims to focus on collecting high-value information, thereby enhancing regulatory oversight while reducing compliance complexity for firms.

For more details and to participate in the consultation, visit the FCA's official website.