Our recent Compliance Clinic, which had 280 participants on the day, was an opportunity for us to post polls to attendees to collect some insight from members around the challenges they have completing the returns. For example, in respect of insurance reporting, 97 % of attendees said they submit nil returns. We believe there should be a better way of collecting this data. As it stands, firms that do not carry on the specific activities in question are required to submit nil returns each year and risk a £ 250 administrative fee where missed.
We very much welcome the regulator’ s commitment to review the proportionality of reporting. Where there are proposals to streamline or remove redundant returns, we will respond in support of these proposals and ask firms to do so too. Currently, firms are already able to feedback on their experience of regulatory reporting through RegData.
Over recent years, the significant increase in reporting has been a source of great frustration, however we now have a period whereby we hope that reporting obligations will improve and become more agile, allowing firms more time to focus on what matters most – delivering good outcomes for consumers.
FCA to review proportionality of reporting
The FCA has confirmed both in a recent portfolio strategy letter for financial advisers and its wider strategy for growth letter sent to the Government that it is undertaking a review of its data collection practices, with the aim to review the proportionality of reporting requirements and remove redundant returns. We hope this will lead to a welcome but gradual reduction in the ongoing reporting burden for firms. We understand the regulator is also exploring the use of branch logic- the creation of multiple paths based on respondents’ answers to specific questions. This is part of a broader strategy to improve the quality of data collected.
Book your place on our next Compliance Clinic –‘ FCA publishes ongoing advice services review – what’ s next for firms?’
7th April, 2pm- 3pm
Our Compliance Clinics deliver regular updates on key themes in one-hour sessions. Each one takes a deep dive into a specific area of regulation currently affecting advisers, with our expert team providing insight and practical guidance, offering 60 minutes of structured CPD.
The FCA has published the long-awaited findings from its review into the delivery of ongoing advice services. The results of this exercise are positive, however the FCA was careful to highlight the population was not a representative sample.
The FCA is now asking the advice industry to review their findings and consider whether they have delivered all the services they were required to deliver, and whether a remedy is required. The FCA has stated it will check on firms’ progress later in 2025 through data-led supervision and targeted follow up work.
In this Clinic, we will explore next steps for firms and for the regulator, how you can prepare, and what support we have on offer.
Book your place today through the‘ Events’ area of the Simplybiz or Compliance First sites.
April 2025 | 19