In preparation for the regulator’s new Integrated Regulatory Return (IRR) and MER, 1st’s online poll asked over 200 firms how equipped they were for the FSA’s new electronic reporting regime.
13 per cent of firms admitted they had heard nothing of online reporting while a further 38 per cent have so far ‘done nothing’ to prepare. Only 16 per cent of adviser firms questioned had a solution in place for MER.
In addition, just 46 per cent of respondents had started to prepare for MER despite warnings they should begin collating data in April.
Rory Curran, executive chairman of 1st, was worried by the findings. “The results are quite concerning, particularly since firms who fail to submit reports online at the required time will be subject to fines and enforcement action which could include removal of their regulatory status.
“While the concept of submitting data online is to be applauded, with the potential savings in time and administration it should offer, advisers will need help and encouragement to adjust to the new regime.”
IRR was introduced following the FSA’s 2003/2004 Plan and Budget commitment to streamline reporting requirements for advisers. The regulator suggested all advisers should begin to collect information for online reporting from April 2005 with the first electronic submissions taking place in July.
As part of the requirements, adviser firms must register with the FSA’s ‘Firms Online’ service. They will then be required to submit Retail Mediation Activities Returns (RMARs) and Complaint Returns twice a year with the reporting dates calculated from their year-end or accounting reference date.
