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Link(s): | FCA cuts more data reporting to benefit 11,000 firms | FCA CP25/24: Quarterly consultation paper No. 49 | FCA CP25/24: Quarterly Consultation Paper |
Context
The FCA has published its latest Quarterly Consultation Paper CP25/49, and has also published a web page, outlining proposals to make further minor cuts to data reporting.
Key points to note and next actions
The relevant proposals within the Consultation which will impact our clients will be to amend the reporting frequency to annual (from quarterly/bi-annually) for the following returns:
- Section E of RMAR (known as RMA-E) – Professional indemnity insurance.
- Section G of RMAR (known as RMA-G) – Training and competence.
Firms submitting RMARs currently, either quarterly or six-monthly, will only need to complete these particular sections once a year if the proposals are taken forward. These proposals are covered in Chapter 4 of the Consultation, which closes on 15th October 2025 and forms part of the FCA Transforming Data Collection initiative (a joint venture between the FCA and Bank of England).
Firms should note that RegData requires ‘cross-validation’ between sections A, D1 and E before they can be submitted, so any potential issues here would need to be resolved by the FCA.
Firms will still be required to notify the FCA if they cease to hold adequate PII at any point during the reporting cycle, under Supervision manual (SUP) Chapter 15.
Context
The FCA has published a web page and an AI Update document outlining how it wants to support the safe and responsible adoption of AI in UK financial markets. It has also published a Feedback Statement in response to the feedback it received to its April 2025 ‘Proposals for AI live testing’ Engagement Paper.
Key points to note and next actions
The FCA is supporting firms to experiment, develop, and test AI in a way that drives innovation, benefits consumers and markets (while balancing the risks) and supports the growth and competitiveness of UK financial services.
- The FCA does not plan to introduce extra regulations for AI. Instead, it will rely on existing frameworks (e.g., Consumer Duty and the accountability and governance brought about by the SM&CR), which mitigate many of the risks associated with AI.
- In its AI Update, the FCA sets out the FCA’s role and objectives, what it has done so far, its existing approach and what it plans to do in the next twelve months.
- To date, the FCA has, jointly with the Bank of England, published the AI Discussion Paper (AI DP) (2022), the Feedback Statement (2023), the AI Public-Private Forum (AIPPF) Final Report (2022), and the 2019 & 2022 machine learning surveys. These are in addition to the April 2025 Engagement Paper and the new Feedback Statement.
- The FCA’s existing approach is to promote the safe and responsible use of AI in UK financial markets and leverage AI in a way that drives beneficial innovation. The AI Update comments on safety, security, robustness, fairness, appropriate transparency, explainability, accountability, governance, contestability and redress.
- Going forward the FCA wants to further its understanding of AI deployment in UK financial markets, build on existing foundations, collaborate further, introduce testing for beneficial AI (see below), and consider its own use of AI.
- A more immediate proposal is the introduction of AI live testing, with firms being able to register or apply to be in the first cohort of firms by 15th September.
- The FCA’s goal is to give firms the confidence to deploy AI systems in a way that drives growth and delivers positive outcomes for UK consumers and markets.
- In its Supervision Hub, the FCA is using predictive AI to assist its agents with real-time knowledge, and an AI voice bot to point consumers to the correct organisation when they first contact us. (This might be to FOS, the FSCS, or to FCA staff).
- The FCA is also experimenting with large language models (LLMs) to make its processes more efficient for authorisations and supervision.
Context
The FCA has launched what it refers to as its “new and improved Handbook website”. This has now formally replaced the previous version of the Handbook. Firms should note that it is not the Handbook content which has been updated or replaced, it is merely the website platform it sits on and its layout and design. This is part of the FCA’s strategy to be a smarter regulator.
Key points to note and next actions
The FCA has published how-to guides and FAQs. The new website has all the features users are familiar with, but makes it easier to:
- navigate and find the information you need;
- understand the connections between FCA rules; and
- compare different versions of Handbook text to see what has been added or deleted over time.
Key points on the new Handbook website:
- The structure and content remain the same. This means that the FCA’s use of terminology remains in place. The use of terms such as ‘taxonomy’, therefore, will remain (‘taxonomy’ means a system for naming and organising things – particularly plants and animals – into groups that share similar qualities).
- The FCA expects to fully launch the new Handbook website later in the year. Firms can access the old Handbook website (legacyhandbook.fca.org.uk) for a short period, while the FCA makes sure the new site works as expected.
- If firms or individuals have an account on the old Handbook website, they will need to create an account on the new Handbook website. This will enable them to ‘favourite’ key parts of the Handbook and sign up to alerts. Any links which have been bookmarked or saved will be automatically redirected to the new site.
- Users can also provide feedback.
Context
The FCA has published a speech, delivered by Steve Smart, FCA Joint Executive Director of Enforcement and Market Oversight, at the 1LoD Financial Crime Summit.
Key points to note and next actions
The key points raised were:
- Financial crime harms trust, and tackling it is a prerequisite for growth.
- The UK must continue to use its strengths to proactively detect and disrupt harm.
- Success depends on smart system prioritisation and collaboration across agencies, industries, borders and disciplines.
In relation to financial crime prevention, the FCA wants to remain on the front foot in protecting the integrity of financial services and “Anticipate. Intercept. Disrupt.”
- The speech sets out the progress the FCA is making and some of the actions it has taken.
- The FCA acknowledges the need for a more proactive approach to financial crime detection, stating that “ the best way to tackle financial crime is to stop it happening in the first place”.
- Partnerships matter more than ever – across sectors, agencies and borders; the common enemy is the agile, well-funded, sophisticated network of financial criminals.
- Smarter supervision is essential, which is more outcomes-focused, more collaborative, and more proportionate for firms demonstrably seeking to do the right thing.
- Effort needs to be focussed where it will have the greatest impact.
Context
Since taking on the role of Chief Executive, Patrick Tiernanhas been working closely with the market to discuss its priorities, opportunities and challenges. The first episode of the ‘Market View’ series offers insight into some of these conversations.
Key points to note and next actions
- Lloyd’s Market Association CEO, Sheila Cameron, asks Patrick about his immediate priorities, the market’s expectations of Lloyd’s new strategy, and discusses the key takeaways from the Corporation’s recently announced HY25 results.
- The episode can be viewed as a recorded webinar, which is accessed via the news article (link above).
Context
New data released by the IUA has shown that Treaty reinsurance written in the London company market grew by more than 10% last year. The sector recorded total premiums written in London of £11.985bn in 2024, up from £10.889bn the previous year.
Key points to note and next actions
- Treaty premiums now represent 27% of the market total, compared to a 25% share in 2023. This is the highest proportion for treaties recorded since the IUA began publishing company market statistics in 2010.
- This year’s London Company Market Statistics Report is due to be published later this month, analysing all premium income for IUA members by placement type, class of business and geographical origin. An advance preview of reinsurance data has been issued, though.
- The figures show that the rise in treaty business offset a slight fall in direct and facultative contracts written by companies in London. The latter totalled £31.789bn in 2024, dropping by 1% from £32.106bn the year before.