Laura WilesThe FCA is seeking views on its proposal to issue a new regulatory reporting return for consumer credit firms carrying on any one or more of the regulated activities of credit broking, providing credit information services, debt adjusting and debt counselling services. If introduced, the new return would replace the existing returns for those activities.
The FCA currently collects data using regulatory returns introduced in 2014, but notes that firms, markets and regulation have changed significantly since then. It believes that the data it currently collects for consumer credit firms is too limited to sufficiently capture their changing business models and nuanced activities. The FCA notes that current returns only allow it to monitor and assess firms’ ability to meet threshold conditions on an ongoing basis, with significant firm engagement, additional ad hoc data requests and manual intervention.
The proposed return would consist of a series mandatory questions for all in-scope firms, covering:
- Permissions
- Business model
- Marketing
- Revenue
- Employees
Depending on a firm’s responses to the above, the return would then present a range of further questions relevant to the firm’s business model. The FCA hopes that this ‘branching logic’ will more readily align questions to a firm’s activities. The specific questions proposed for each type firm are set out in further detail in the consultation paper.
The consultation closes on 31 October and the FCA plans to publish a final policy statement in Spring 2025.