The current volume of information that is required to be submitted every six months will be reduced by 80 per cent on the Complaints Return and by 30 per cent on the RMAR. The move enables the regulator to use the reporting information more effectively to monitor and mitigate risks to its statutory objectives and, importantly, reduce the administrative burden on firms in completing these returns.
The proposals sit within the FSA’s broader consultation paper on regulatory reporting and meet its commitment to review the returns. The review involved discussions about experiences of completing the returns and has subsequently acted upon its findings.
Jeremy Heales, head of regulatory reporting and data analysis at the FSA, said: “These returns, particularly the RMAR, are one of the major supervisory tools for small firms, and therefore impact the vast majority of firms that the FSA regulates. The proposals fit with our broader aim of making it easier for firms – especially small firms – to do business with us as well as reducing their regulatory burden.
“In addition to this, we are providing further guidance and help to make it easier for firms to complete this return. Although these proposals would reduce the amount of data we collect, it would still provide us with the information to help us ensure that firms meet the standards we expect, including treating their customers fairly.”
Peter O’ Donovan, mortgage manager at Bestinvest, said: “The streamlining of information will be welcomed as long as it doesn’t put the borrower at any risk it’s good for both parties.”
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