| Link(s): | FCA simplifies complaints reporting process | FCA PS25/19: Improving the Complaints Reporting process |
Context
The FCA publishes Policy Statement PS25/19: Improving the Complaints Reporting process which confirms plans to streamline the way firms report complaints to them. These improvements aim to improve data quality and strengthen consumer protection across the sector.
Key points to note and next actions
- Five separate existing complaints returns will be replaced by a single consolidated return, which the FCA says will simplify reporting, reduce duplication, and support more consistent and comparable data collection.
- Sarah Pritchard, deputy chief executive of the FCA said: ‘These improvements are a significant step forward in ensuring transparency and consistency across the sector. By streamlining returns and introducing clearer guidance, we’re making it easier for firms to provide high-quality complaints data while strengthening our ability to protect consumers, particularly those who are most vulnerable.’
- These changes reflect the FCA’s commitment to protecting consumers and being a smarter regulator, while reducing unnecessary burdens on firms. The first reporting period under the new process will run from 1 January to 30 June 2027.
Key changes to complaints reporting will include
Permission-based reporting
- Complaints reporting will be based on firms’ permissions, meaning firms will only need to complete the sections of the new return relevant to their regulated activities.
Removal of group reporting
- Firms will be required to submit complaints data at the individual legal entity level, increasing transparency and more accurate regulatory oversight.
Updated complaints taxonomy
- The FCA has updated the complaints taxonomy and expects this to improve how complaints are categorised and understood, reflecting modern products and services and aiming to reduce reliance on reporting complaints against broad categories such as ‘Other’.
Identifying customers as vulnerable when firms report complaints
Firms will be required to report whether complainants are in vulnerable circumstances using the following two data points:
- all complaints where the firm has identified the customer is in vulnerable circumstances, regardless of whether this was through customer disclosure or any other means, such as system inferred indicators.
- all complaints where the complaint relates to or was caused by the firm’s failure to consider or respond to the customer’s characteristic(s) of vulnerability, regardless of how any such characteristics were identified.
Fixed reporting periods
- All firms will now report complaints data on a fixed 6-monthly and calendar year basis, replacing the use of each firm’s Accounting Reference Date (ARD).
- Firms currently reporting annually, namely, Funeral Plan providers, CMCs, Payment Service providers and some consumer credit firms, will now report twice a year.
- This link can be used to access the full policy statement and updated guidance on the FCA’s website