The FCA’s latest Quarterly Consultation Paper (CP26/17) continues its drive towards a more proportionate and efficient regulatory framework. Among the proposals, Chapters 2, 6 and 7 are particularly relevant for regulated firms, reflecting the regulator’s ongoing commitment to reducing unnecessary compliance burdens while maintaining appropriate consumer and market protections.
Chapter 2 – Streamlining Climate-Related Disclosures
The FCA is proposing to simplify its climate-related disclosure requirements for investment products by removing the obligation to produce standalone product-level TCFD reports. The regulator has acknowledged that these disclosures have often been complex, costly to produce and of limited value to many investors. Under the proposed framework, firms would instead be required to consider whether climate-related risks and opportunities are materially relevant to a product’s financial performance and disclose information accordingly. While institutional investors would continue to have access to key climate-related data upon request, the overall reporting burden on firms is expected to reduce significantly. For firms, this represents a welcome shift towards a more outcomes-focused approach, allowing resources to be directed towards producing disclosures that are more meaningful and useful to investors rather than complying with prescriptive reporting requirements.
Chapter 6 – Reduced Notification Requirements for Cryptoasset Promotions
Chapter 6 proposes a targeted reduction in notification obligations for firms approving qualifying cryptoasset financial promotions. Currently, firms are required to notify the FCA each time they approve a cryptoasset promotion. The FCA now considers this requirement to be disproportionate given the level of compliance observed since the regime was introduced. Under the proposals, notifications would only be required in limited circumstances, including where firms have recently obtained approval permissions or where promotions constitute direct offer financial promotions. The change is intended to reduce administrative burden while allowing the FCA to maintain oversight of higher-risk activity. Firms operating in this area should welcome the reduction in operational overheads, although robust approval processes and governance arrangements will remain essential given the FCA’s continued focus on financial promotions as a supervisory priority.
Chapter 7 – Clarifying Regulatory Reporting Requirements
Chapter 7 contains a number of technical amendments designed to improve clarity within the FCA’s reporting framework. The proposed changes include confirming the reporting period applicable to the Retail Mediation Activities Return (RMA-M) and updating guidance relating to the Baseline Financial Resilience Report (FIN073) to reflect the move to annual reporting. While these amendments are not expected to result in significant operational changes, they should help firms better understand their reporting obligations and reduce the risk of inconsistencies or reporting errors. The proposals also align with the FCA’s wider Transforming Data Collection programme, which aims to modernise regulatory reporting and improve the efficiency of data collection across the financial services sector.
What Firms Should Be Considering
Taken together, these proposals demonstrate the FCA’s willingness to remove requirements that no longer deliver sufficient regulatory value. The consultation reflects a broader regulatory trend towards simplification, proportionality and more effective use of both industry and supervisory resources.
Firms should review the proposals carefully to assess any impact on existing disclosure, financial promotion and regulatory reporting processes. Although many of the changes are deregulatory in nature, firms will still need to ensure that appropriate governance, oversight and record-keeping arrangements remain in place to meet regulatory expectations.
How Complyport Can Help?
- RegulatoryImpact Assessments and Compliance Advisory:While CP26/17 is largely aimed at reducing regulatory burdens, firms should carefully assess how the proposed changes may affect existing compliance frameworks, governance arrangements and reporting processes. Complyport can assist firms in conducting impact assessments, identifying operational and regulatory implications, and determining whether existing policies, controls and procedures remain appropriate in light of the FCA’s proposals. We also support firms in preparing consultation responses and planning for implementation of any final rules.
- Governance,Policies andTraining: Although several of the proposals seek to simplify existing requirements, firms will remain responsible for maintaining robust governance, oversight and record-keeping arrangements. Complyport assists firms with reviewing and updating compliance manuals, ESG frameworks, financial promotion procedures, regulatory reporting policies and governance documentation. We also deliver tailored training to Boards, Senior Managers, Compliance teams and front-office staff on evolving FCA requirements, helping firms demonstrate ongoing compliance and effective regulatory oversight.
- ESG, Financial Promotions and Regulatory Reporting Support:The proposals relating to climate-related disclosures, cryptoasset financial promotions and regulatory reporting may require firms to review existing compliance arrangements to ensure they remain aligned with FCA expectations. Complyport provides practical guidance on sustainability-related disclosures, financial promotion approval processes, governance controls and regulatory reporting obligations. Our consultants work with firms to develop proportionate compliance solutions that reflect both regulatory requirements and business objectives.
Contact Us
To discuss how the FCA’s evolving changes may impact your business, speak to one of our experts.
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