Introduction
In February 2025, a number of firms will have received a Section 165 request, which is a mandatory regulatory request for information on various aspects of their business. This request specifically targets the Wealth Management and Stockbroking sector, aiming to collect structured data through a formal survey. If your firm has received this request, the survey must be completed and submitted by the stated deadline.
Under Section 165 of the Financial Services and Markets Act 2000 (FSMA), the FCA has the authority to require firms to provide information necessary for supervision and enforcement. Firms must comply with these requests as outlined in SUP 2.2 of the FCA Handbook.
What is this Survey?
Receiving this survey does not imply that your firm has engaged in any wrongdoing or that enforcement action is imminent. Firms receive this request simply because they operate within the relevant sector. The Financial Conduct Authority (FCA) uses this survey to enhance its market oversight, identify potential consumer risks, and assess industry practices.
The survey seeks detailed information on:
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- Business models, pricing structures, and client demographics.
- Fee arrangements, service offerings, and portfolio composition.
- Governance frameworks, employee remuneration, and risk management policies (aligned with SYSC 3 and SYSC 6 of the FCA Handbook, covering governance and compliance standards)
This data helps the FCA ensure fair value for consumers (as per COBS regulations on pricing and transparency), detect malpractice, and refine its supervisory approach. Additionally, firms must adhere to PRIN 2 (Skill, Care, and Diligence) and PRIN 6 (Customers’ Interests) when completing this survey.
It is essential that firms take this request seriously and provide accurate and comprehensive responses. Failure to do so may result in follow-up inquiries or further regulatory scrutiny. Additionally, firms should view this as an opportunity to internally assess their compliance and operational practices, implementing any necessary improvements.
Next Steps
Firms have been given a reasonable timeframe to complete the survey, which is due by mid-to-late May 2025. However, as with all FCA data requests, responses may trigger additional questions, depending on the answers provided. It is advisable to allocate sufficient time and resources to ensure the submission is both accurate and reflective of the firm’s operations.
To prevent delays, firms should begin collating information as early as possible and ensure that responses align with regulatory expectations.
How Complyport Can Help
Complyport can assist firms in understanding and responding to the Section 165 survey effectively. Our support services include:
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- Survey Interpretation: Clarifying the FCA’s questions and their relevance to your business.
- Survey Review: Conducting an independent review of responses before submission to ensure they are accurate, clear, and well-structured.
- Regulatory Gap Analysis: Identifying areas for improvement based on survey findings to enhance compliance.
- Implementation Support: Assisting with policy updates, documentation revisions, and compliance enhancements as required.
For expert guidance, contact Complyport today to discuss how we can support your firm’s regulatory obligations.
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