The FCA has confirmed changes set to simplify its complaints reporting process.
The key changes include:
- Consolidating existing returns – the FCA will be consolidating five existing complaints returns into a single return, beginning with a 12-month implementation period. The first submission for the new return will be due from 1 July 2027;
- Linking questions in complaints return to firms’ permissions – the FCA will implement a permissions-based filtering system to reduce administrative burden and support accurate reporting;
- Simplifying nil returns – the FCA will proceed with providing visual prompts to assist firms in submitting nil returns, and monitor the overall usefulness of nil returns going forwards;
- Removing group reporting – the FCA will remove the group reporting option from complaints returns, and hopes this will increase transparency and data accuracy;
- Updating complaints categorisation – the FCA will add new product categories and revise others based on feedback – it hopes, among other things that this will reduce the current reliance on the ‘Other’ category;
- Capturing vulnerable customer complaints – respondents recognised the value in collecting this data, and the FCA will proceed – in line with concerns raised – to implement this proposal while ensuring the relevant data is not published;
- Tailoring complaints guidance – the FCA will improve its guidance on complaints, providing examples and tailored advice for specific scenarios;
- Increasing frequency – funeral plan providers, CMCs, PSPs and some consumer credit firms will now report every 6 months instead of annually; and
- Aligning reporting periods – reporting periods will now be aligned with the calendar year to improve consistency.