Sandy McGregor, Director of Policy, Simplybiz

New additional reporting on hold

We recently held a Compliance Clinic on the subject of regulatory reporting. We were able to see from the‘ chat’ function that this continues to be an emotive and frustrating subject for those responsible for reporting within firms, and a compliance monitoring task that requires almost constant attention throughout the year. The good news is things may be about to improve.

For investment advice firms, the opposite was true only a few months ago. We expected to have additional reporting confirmed, requiring firms to identify potential liabilities, set aside capital, and then report this to the FCA via new entries within an existing RegData return. Whilst we strongly welcomed the endeavour to shift the balance towards a‘ polluter pays’ model, we had concerns around the effectiveness of the proposals, given the fact they appeared to rely on self-reporting. The FCA has now announced that these proposals, and the additional reporting requirements, are on hold under later this year pending further review – a welcome development.

Still plenty to manage

That said, there are still a significant number of returns due each year. To name a few, firms have to carefully diarise for insurance reporting returns at the start of each year; every six months there is the firm’ s main‘ RegData’ Retail Mediation Activities Return(‘ RMAR’) to complete; a quarterly Baseline Financial Resilience Report; a Conduct Rules return in the autumn; as well as a couple of easily overlooked FCA Connect notifications to confirm the accuracy of Directory Persons and Firm Details( previously standing data). There is a lot to keep on top of and manage. These returns have varying timescales for completion and missing a return can result in an unwelcome £ 250 administrative fee, payable to the regulator.

A glimmer of hope

So, what about this glimmer of hope? Firstly, the FCA is making it easier to understand what returns are due and when. And, secondly, it is looking to review the proportionality of existing reporting.

A new single sign in- My FCA

The FCA has announced it will launch‘ My FCA’ in spring 2025. This will make it quicker and simpler for firms to access FCA systems. Rather than having multiple platforms to sign into on the FCA website, firms will have single point of sign in to Connect, RegData, Invoicing, and the firms’ page on the Register. We understand that, once signed in, you’ ll be able to see your scheduled regulatory reporting and attestation tasks in one place. This will make it easier to view all the reporting and notification information relating to your regulatory activities, and to fulfil your regulatory responsibilities.

18 | The Adviser