FCA Review: Data Quality in MIFIDPRU Reporting

The Financial Conduct Authority (FCA) recently published the Prudential regulatory reporting by MIFIDPRU investment firms – data quality review and this has highlighted both areas of strong practice and aspects requiring improvement. Between January 2024 and March 2025, data submitted by approximately 3,800 firms revealed that, while most firms have a solid understanding of reporting requirements, persistent issues in data quality could impact the accuracy of prudential metrics and risk assessments. 

High-quality, consistent reporting enables the FCA to identify firms with weaker financial resilience and prioritise supervisory interventions, thereby reducing potential harm to consumers and maintaining market stability. Conversely, poor data quality can obscure risk signals and indicate weaknesses in systems and controls at the firm level. 

This review is relevant to FCA solo-regulated investment firms and groups subject to the Investment Firms Prudential Regime (IFPR) and the MIFIDPRU sourcebook. 

Key Findings 

1. 60% of firms submitted data that passed nearly all tests, demonstrating strong understanding of MIFIDPRU requirements. 
2. 30% of firms are progressing towards consistent, high-quality reporting, though some issues persist. 
3. 10% of firms repeatedly submitted inaccurate data, revealing fundamental weaknesses in reporting systems and controls. 

Areas of Good Practice 

• Consistent reporting over time: Around 90% of firms showed consistency in quarterly submissions, enabling comparability and effective supervisory analysis. 
• Cross-validation across returns: 85% of K-factor requirements reported in MIF001 submissions were accurately derived from MIF003 returns, supporting reliable capital adequacy calculations and appropriate risk categorisation. 

Areas for Improvement 

• Inconsistent reporting across sources: ICARA data in MIF007 submissions sometimes diverged from internal firm records. While minor discrepancies are expected, values should remain broadly aligned for the same reporting period. 
• Incorrect implementation of guidance: 20% of firms misreported Own Funds Threshold Requirements, impacting assessments of capital adequacy and potential wind-down planning. 
• Errors in firm type reporting: Some MIF001 submissions contained blank or incorrect firm type fields, particularly K-factor data, leading to potential miscalculations of capital requirements. 
• Units and data entry mistakes: Some firms submitted figures in incorrect units or repeated identical values across periods. All monetary values should be reported in Sterling (000s), in line with FCA guidance under MIFIDPRU 9 Annex 2. 

What Your Firm Should Do 

• Review your regulatory reporting arrangements against these findings. 
• Identify gaps and strengthen controls to ensure alignment with MIFIDPRU 9 Annex 2. 
• Note that this review does not introduce new requirements, rather, it reinforces existing expectations under the current MIFIDPRU framework. 

Next Steps 

• The FCA will send data quality notifications highlighting potential issues, including specific data points. 
• Future IFPR newsletters will provide detailed examples of common reporting errors. Firms can subscribe by emailing IFPR-newsletter@fca.org.uk with the subject line “Sign up.” 
• Enhancements to RegData, such as systems-level validation and pop-up guidance, are being explored to improve reporting accuracy. 

This review underscores the FCA’s ongoing commitment to data-driven regulation. Accurate, consistent regulatory reporting is essential to safeguarding consumers, supporting market integrity and helping firms meet their prudential obligations. 

How Complyport Can Help? 

Adapting to evolving regulatory expectations, particularly those under the IFPR, can be challenging, especially when they affect multiple teams within your organisation. Complyport’s specialist risk management and prudential team is here to support your firm in navigating the FCA’s MIFIDPRU prudential reporting requirements, ensuring your reporting is accurate, consistent and fully compliant. 

We can assist with: 

1. Assessing Reporting Processes: We review your firm’s regulatory reporting arrangements against FCA expectations, identifying gaps in data quality, control weaknesses and areas for improvement in submissions such as MIF001, MIF003, and MIF007. 
2. Strengthening Controls: We help implement robust procedures to reduce errors in reporting, including K-factor calculations, Own Funds Threshold Requirements, ICARA data and unit consistency, ensuring your firm consistently meets MIFIDPRU standards. 
3. Governance, Policies and Documentation: We update internal policies, compliance manuals and reporting frameworks to embed best practice in data quality, including clear guidance on units, reporting periods, and field completion. 
4. Training and Advisory Support: Tailored training sessions equip Compliance, Operations and Senior Management teams with practical knowledge to maintain high-quality reporting and understand the FCA’s expectations on prudential data integrity. 
5. Ongoing Monitoring and Support: We provide guidance on implementing continuous monitoring, internal checks and review procedures to sustain improvements in reporting quality and reduce the risk of recurring errors. 

Contact Us
To understand how these changes may impact your business, or to discuss how Complyport can streamline your compliance with the new Companies House requirements, get in touch to arrange a meeting with one of our Subject Matter Experts. 

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