| Link(s): | FCA reduces firm burden for 16,000 firms | FCA CP25/8: Data Decommissioning: Removing reporting and notification requirements |
Context
The FCA has commenced its work in relation to reducing reporting burdens for firms by publishing Consultation Paper CP25/8. The Consultation seeks to remove three ‘collections’ (reports and notifications) from the FCA Handbook, only one of which impacts general insurance intermediaries.
Key points to note and next actions
- The proposals in this CP affect a wide range of firms including insurance intermediaries, mortgage intermediaries, and peer-to-peer lenders.
- The three proposed changes are to stop collecting data via:
- the FSA039 return (client money and client assets – not usually impacting insurance distributors);
- Section F of the Retail Mediation Activities Return (RMA-F – changes to close links and controllers) and the associated references to it in the Handbook and in the Notes to the RMAR; and
- FCA Form G (individual adviser complaints notification – does not impact general insurance distributors).
- The FCA is reviewing the RMAR returns to simplify them, delete duplication and remove redundant material. RMAR is the core regulatory return submitted by firms who arrange sales of or give advice on mortgages, non-investment insurance or investment products. Nearly 11,000 firms currently submit this return, but information collected in RMA-F is available from other sources. That being the case, the FCA is proposing to stop collecting this information now, rather than wait until the broader review of RMAR is completed. Removing this requirement does not remove the requirement on firms to notify the FCA of any changes to their close links or controllers, as set out in SUP 11.
- The FCA is asking for feedback on its proposals by 14th May 2025.
- While this consultation is live, firms who are currently required to submit these data returns can choose not to do so and will not be pursued for late payment fees.