Financial Conduct Authority
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FSA aims to streamline regulatory returns

The Financial Services Authority (FSA) is proposing to make it easier for firms to complete both the Complaints Return and the Retail Mediation Activities Return (RMAR) by simplifying and shortening them.

The volume of information that firms must report through the Complaints Return and RMAR – both of which are submitted every six months by most firms – will be reduced by around 80% and 30% respectively. This would enable the FSA to use the reporting information more effectively to monitor and mitigate risks to the FSA's statutory objectives and, importantly, reduce the administrative burden on firms in completing these returns.

These proposals, which sit within the FSA's broader Consultation Paper (published today) on regulatory reporting, meet the regulator's commitment in its Better Regulation Action Plan PDF (published in December 2005) to review these returns. The review, which began at the end of 2006, involved discussions with the industry and trade associations about firms' experiences of completing these returns. The FSA also looked at how it uses the data it collects.

Jeremy Heales, Head of Regulatory Reporting and Data Analysis at the FSA, said:

"These returns, particularly the RMAR, are one of the major supervisory tools for small firms, and therefore impact the vast majority of firms that the FSA regulates. The proposals fit with our broader aim of making it easier for firms, especially small firms, to do business with us as well as reducing the regulatory burden on firms where we can. In addition to simplifying the RMAR, we are also providing further guidance and help to make it easier for firms to complete this return.

"Although these proposals would reduce the amount of data we collect from firms, it would still provide us with the information to help us ensure that firms meet the standards we expect, including treating their customers fairly."

Notes to editors

  1. Consultation Paper 07/17: 'Integrated Regulatory Reporting (IRR): Changes to reporting requirements affecting most firms' is available on the FSA website.
  2. The Complaints Return details the nature of the complaints that firms receive, and is completed by virtually all firms. The RMAR collects data on a firm's financial position as well as its conduct of business activity, such as training and competence; it is completed by intermediaries permitted to undertake retail investment, mortgage and general insurance business.
  3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
  4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

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