In a bold move to reduce red tape and modernise regulatory oversight, the Financial Conduct Authority (FCA) has published Consultation Paper CP25/8: “Data Decommissioning – Removing Reporting and Notification Requirements.” This paper outlines proposals to discontinue three legacy reporting requirements that no longer serve their intended supervisory purpose.
As part of the FCA’s wider Transforming Data Collection programme, launched jointly with the Bank of England, CP25/8 represents a targeted effort to reduce unnecessary regulatory burden, streamline data flows and encourage a more innovative and competitive UK financial market.
What is Changing: The Three Reports Proposed for Decommissioning
In addition to removing multiple pages of guidance for data collections already decommissioned, the FCA proposes to remove the following three reporting requirements:
- Form G – Retail Investment Adviser Complaints Notifications
Currently required from firms subject to DISP 1.10A.1R (Dispute Resolution: Complaints).
The FCA has found the data is underutilised, with alternative sources such as consumer complaints through the Financial Ombudsman Service (FOS) providing sufficient insights.
- FSA039 – Client Money and Asset Return (CMA Report)
Submitted by firms holding client assets and money.
The FCA receives better quality data through the CMAR (Client Money and Asset Return) and CASS (Client Assets Sourcebook) audit reports, making FSA039 redundant.
- Section F of the Retail Mediation Activities Return (RMAR)
This section collects information on firms’ close links and changes in control.
The FCA considers this requirement duplicative, as the information is already reportable under other rules and notifications (e.g. SUP 11 and Principle 11) and has limited supervisory value in its current format.
Who Will This Impact?
Approximately 16,000 regulated firms across various sectors could benefit from these proposals, including:
- Retail investment intermediaries
- Mortgage brokers
- Insurance intermediaries
- MIFIDPRU investment firms
- Securities and futures firms
- Investment managers and CPMI firms
- Peer-to-Peer (P2P) lending platforms
If adopted, the changes could deliver time and cost savings, reduce duplication in reporting and simplify firms’ compliance processes.
Strategic Benefits of the Proposed Changes
- Reduced Compliance Burden
The FCA estimates substantial cost savings across the industry, both in terms of internal resource allocation and reduced reliance on third-party compliance service providers.
- Simplified FCA Handbook
If implemented, the changes are expected to streamline the FCA’s regulatory manuals, potentially removing over 140 pages of guidance and associated instructions, reducing complexity for compliance teams.
- Smarter Supervision
The FCA continues to advance the principle of “collect once, use often.” By decommissioning unused or duplicative data requirements, the regulator aims to focus on high-quality, targeted information that supports proactive supervision.
- Improved Market Competitiveness
Making compliance more proportionate and risk-based supports broader UK regulatory reform objectives. This boosts g innovation, competition and growth across the financial sector.
Timeline and Next Steps
The FCA is currently reviewing stakeholder feedback and is expected to publish a final policy statement later in 2025, setting out:
- Which proposals will be adopted
- The implementation timeline for changes
- Any transitional arrangements or updates to the FCA Handbook
What Should Firms Do Now?
- Review current reporting processes to determine whether they include any of the three proposed-for-removal requirements.
- Engage with the consultation (if not already done) to ensure operational realities are reflected in the FCA’s final decision.
- Monitor for the final policy statement and be prepared to update internal compliance procedures and reporting software accordingly.
How can Complyport Help
In response to the FCA’s proposals under CP25/8, Complyport offers tailored regulatory support to help firms navigate the changes, optimise compliance processes, and stay ahead of evolving FCA requirements.
- Regulatory Impact Assessment: Help firms identify whether they are currently subject to the three reporting requirements proposed for removal and assess the operational impact of these changes.
- Reporting Process Review and Optimisation: We assist in streamlining existing compliance processes by advising on the decommissioning of redundant reports and aligning remaining workflows with FCA expectations.
- Policy Statement Readiness: Complyport can help firms prepare for the upcoming FCA policy statement by developing action plans, advising on transitional arrangements and supporting updates to compliance manuals.
- FCA Handbook Navigation and Advice: Our regulatory experts guide clients through relevant sections of the FCA Handbook (DISP, SUP, CASS, etc.) to ensure firms remain fully aligned with evolving requirements.
- Training and Communications: We provide training sessions and internal briefings to help compliance teams understand the implications of CP25/8 and how to respond effectively.
- Ongoing Compliance Support: With deep experience in UK regulatory change, we can provide ongoing consultancy and regulatory updates to ensure clients remain ahead of reform initiatives.
Book a Meeting with a Complyport SME
To understand how the FCA’s proposals in CP25/8 may impact your firm’s reporting obligations, book a meeting with a Complyport Subject Matter Expert today.
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