FCA Financial Resilience Survey

The FCA is asking a number of firms to complete a survey to help the body understand how the current financial climate is impacting FCA solo-regulated firms.

The latest survey follows on from FCA’s Covid impact survey and is conducted to assess the financial resilience of firms in the UK. The financial resilience survey is a mandatory requirement under section 165 of the Financial Services & Markets Act (FMSA) 2000.

Firms needing to complete this survey will receive an email from the FCA in two groups:

  1. Tranche 1 between 7 and 10 February 2023 *
  2. Tranche 2 between 14 and 17 February 2023 *

*Visit the FCA for details on the full schedule.

Firms in the Temporary Permissions Regime and Supervisory Run-off Regime can expect to receive this same survey, based on the same timeline above. Please note that the FCA will send a warm-up/introduction email to all firms at least one week prior to them receiving the survey.

The survey will include 9 questions designed to give the FCA information about the following important areas:

  • Liquidity/cash availability and needs
  • Recent financial performance
  • Scale of business activity

The survey will be sent to all firms in the following Tranche portfolios unless they satisfy specific exclusion criteria.

The following firms fall under Tranche 1:

  • E-Money Issuer
  • High Cost Lenders
  • Payment Services Firm
  • Peer-to-Peer lending platforms
  • SIPP Operators
  • Advisers and intermediaries
  • Contracts for Differences (CFD) Providers
  • Credit reference agencies and providers of credit information services
  • Crowdfunders
  • Custody Services
  • Debt purchasers, debt collectors and debt administrators
  • Mainstream Consumer Credit Lenders
  • Personal and Commercial Lines Insurance Intermediaries
  • Platforms
  • Wealth Management

And Tranche 2:

  • Exchanges
  • Asset management
  • Wholesale brokers
  • Wholesale banks
  • Principal trading firms
  • Wholesale (other)
  • Life third party administrators
  • Multilateral Trading Facilities and Organised Trading Facilities
  • Alternatives
  • Benchmarks
  • Claims management
  • Lloyd’s & London market intermediaries
  • Retail mortgage lenders
  • Mortgage third-party administrators
  • Lifetime mortgage providers
  • Debt advice firms (excl. not-for-profit)
  • Non-bank lenders
  • Mortgage intermediaries
  • Motor finance providers
  • Retail finance providers
  • Price comparison websites
  • Corporate finance firms

FCA New Regulatory Return

On 3 October 2022, the FCA published a Consultation Paper with proposals to replace the FCA Financial Resilience Survey with a new regulatory return during 2023. In doing so, the FCA aimed to:

  • reduce the administrative and financial burden that an ad hoc survey places on firms
  • increase the quality and consistency of financial resilience data received from its solo-regulated firms

This consultation has now closed, and the Authority will consider all feedback and publish a policy statement and final rules by Summer 2023.

How can Complyport help?

Complyport’s Financial Resilience Team can help regulated firms to complete the survey or help answer questions that often arise from survey results. Our team of consultants can assist investigate any areas via an Impact Assessment.

Please contact Jan Hagen for assistance with your Financial Resilience Survey via email at jan.hagen@complyport.co.uk to book in a free consultation.

About Complyport

Complyport is a market leading consulting firm supporting the UK financial services industry for over 20 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.

Complyport can assist with the preparation of a GAP analysis and impact assessment on the investment firm’s capital adequacy and risk management framework of the Company under the regulatory framework.

We specialise in supporting the UK financial services industry with compliance guidance, advice and best practice.

  • Financial Promotions guidance, support, and management software solutions
  • Prudential support, IFPR, ICARA and financial resilience advice
  • Operational resilience & Cybersecurity advice
  • CASS advice and protections of client assets
  • Comprehensive compliance work-flow management software
  • Compliance managed services and resourcing compliance personnel
  • Financial Crime and Forensics
  • Consumer Duty implementation advice
  • Skilled Person Reviews and Regulatory Investigation

Contact our Head of Regulatory Business Solutions, Jan Hagen via email at: jan.hagen@complyport.co.uk to book a free consultation.

 

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