The FCA is planning to axe at least three regular reporting requirements for 16,000 regulated firms in an effort to reduce red tape and boost growth.

The regulator is consulting on plans to drop “unnecessary data reporting” for firms to reduce admin and “unlock economic growth.”

The three data collections will be removed the FCA handbook and were hinted at in a letter from FCA CEO Nikhil Rathi to Prime Minister Sir Keir Starmer in January this year. The letter outlined plans to reduce red tape to boost growth.

The three regular requirements set to be axed are:

• Form G: The Retail Investment Adviser Complaints Notifications Form
• FSA039: Client Money and Assets
• Section F RMAR

The FCA said the returns “no longer serve a critical supervisory function” and the move to remove reporting instructions would shorten the FCA handbook. Further currently required returns may also be dropped depending on the results of a consultation.

The FCA said it accepted that regulated firms being required to regularly submit a large number of detailed returns covering their businesses was a key part of the burden of regulation.

The watchdog published its plans today in a consultation paper: CP25/8: Data Decommissioning: Removing reporting and notification requirement.

The FCA said: “We want to streamline our data collection process, so that we collect only what is necessary for the effective supervision of firms. We want to achieve a balance between regulatory oversight and data efficiency, ensuring that firms can focus on high-value reporting that supports better consumer and market outcomes.”

The consultation applies to: Insurance, Mortgage and Retail investment intermediaries; MIFIDPRU investment firms; Securities and futures firms; Investment management firms; Collective portfolio management firms and Peer-to-peer lenders.

Jessica Rusu, chief data, intelligence and information officer, FCA, said: “In our strategy, we committed to being a smarter regulator and supporting growth. So while we need data to do our job, we should challenge ourselves on whether what we’re asking for is needed. We’re getting rid of these data requests, saving time and money for thousands of firms, and we will review more in the future.” 

To support firms with more streamlined reporting, the FCA recently launched My FCA, giving firms with a single sign-in and all regulatory tasks in one place.

Feedback on the consultation paper is required by 14 May. The FCA said that while the 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.

• In a separate move the FCA said today that it would also consult on plans to simplify the information which must be provided to investors. The aim is to boost investment

The FCA wants to see a “simpler and flexible system” to replace current EU rules. The plans affect more than 12.6 million UK investors (23% of adults) who hold an investment falling within what the FCA defines as a Consumer Composite Investment (CCI), (FCA Financial Lives survey, 2024). The consultation will cover areas such as:

• Removing the requirement for firms to calculate and disclose implicit transaction costs. This would remove a significant compliance requirement for firms, while ensuring that consumers are still provided with the most relevant information about product transaction costs. The FCA is keen to hear views on how to make sure that these costs are understood.  
• Simplifying overall cost disclosures by aligning other cost disclosure rules to CCI requirements.
• Consequential amendments to other parts of the FCA Handbook that result from the new CCI rules.  

Stakeholders are invited to respond to this paper by 28 May 2025.