The UK Financial Conduct Authority (FCA) has published a consultation paper (CP25/13), with a press release and updated webpage, proposing the improvement of complaints reporting process as part of its five-year strategy to become a smarter regulator. The FCA's aim is to make data collection processes more simple, effective and consistent, as well as improving the quality of data that is collected and reducing regulatory burden.
The FCA sets out the following proposed changes:
- Consolidating five of the existing returns into a single return. The FCA proposes that firms would only complete parts which are relevant to them and aligned to their permissions. This would also require firms that have not received complaints to submit only one nil return.
- Removal of group reporting so that firms report their complaints data only at individual firm level.
- Updating complaints categorisation to better reflect the evolution of product types, including: (i) providing a revised list of complaint categorises; (ii) removing product types not regularly used; and (iii) adding product types often placed in the 'Other' category and additional types identified through the FCA's engagement.
- Improving guidance on the products the FCA expects firms to report complaints against.
The FCA has also proposed to establish a six-monthly cycle for completing the single return, with submission dates fixed to 31 December and 30 June each year, aligning with the FCA's current data publication records. Notification of redress events, where firms expect significant increases in complaints, are being consulted on separately as part of the FCA's consultation on Modernising the Redress System. The deadline for comments to the consultation paper is 24 July.
