7 FCA Regulatory Reporting Requirements You Need To Know

If your firm is regulated by the Financial Conduct Authority (FCA), then you’ll already be aware of the FCA regulatory reporting requirements you need to meet. 

These rules can be complex, and it’s not always clear what’s expected by the UK’s FCA. However, failure to adhere to the requirements can result in hefty penalties being issued to your firm. As such, you must make meeting them an integral part of business management. 

To help make meeting the FCA regulatory requirements easier for you and your team, we’ll break down the seven common reporting obligations most firms are required to submit. 

Let’s take a closer look and simplify the process!

1. Annual Financial Statements

FCA-regulated firms are required to submit audited financial statements every year.  

To properly meet the FCA reporting guidelines, certain elements must be included within this yearly statement. Ensure you include the following: 

• Audited financial statements: If you’re required to prepare consolidated accounts, include accounts which meet UK-adopted IFRS, as well as parent company accounts in alignment with UK laws. If you’re not required to prepare consolidated accounts, ensure your accounts follow UK law. 
• Management report: Within this, you must include a review of the issuer’s business, as well as detail the main risks and uncertainties of the issuer. The report must be balanced and outline any notable events from the year, as well as any likely future developments. 
• Responsibility statements: This must be made by the individual responsible within the issuer – include the name and function of this person within the statement. Ensure you follow the accounting standards of the applicable set of rules to you. 

For further information on how these need to be submitted, check out the FCA reporting handbook online. 

2. Capital Adequacy Reporting

You must report on capital adequacy, liquidity, and risk exposure. 

Typically, this needs to be submitted quarterly, but the frequency can vary depending on the firm’s category. Ensure you’re aware and keep track of how often you need to submit capital adequacy reports to stay in compliance with FCA reporting requirements.  

3. Client Money and Assets Return (CMAR)

You must submit a Client Money and Assets Return (CMAR) statement if your firm holds client money or safe custody assets. 

Within this, you’ll need to provide details about the measures taken to protect the client’s funds and assets. This may be required on a monthly or quarterly basis, typically by the 15th of the following month. Make sure you’re aware of the schedule you need to adhere to. 

4. RegData Financial Reporting (FCA Financial Reports)

To meet FCA reporting guidelines, you’ll need to submit several financial returns, including balance sheets, profit and loss accounts, and key risk metrics. 

These must be submitted via the FCA’s RegData system, typically on a quarterly or annual basis, though this varies depending on the firm. It’s important to be aware of the schedule you need to follow to avoid missing any deadlines. 

5. Internal Capital Adequacy and Risk Assessment (ICARA)

Firms must assess their capital and liquidity risks as part of their Internal Capital Adequacy and Risk Assessment (ICARA) process. 

This is under the new Investment Firm Prudential Regime (IFPR), which replaces the previous ICAAP (Internal Capital Adequacy Assessment Process). You’ll typically need to submit this yearly, though continuous monitoring throughout the year is best.

6. FCA Fees and Levy Reports

Firms must file returns, fees, and levy reports as part of their FCA reporting data. These may include details of their business activities and income. 

The FCA uses these figures to calculate annual fees and levy contributions towards governing bodies, such as the Financial Ombudsman. The submission date for these may change, so ensure you’re aware of the correct submission deadline for your business to avoid incurring late fees. 

7. Liquidity and Market Conduct Reports

You may be required to submit your Liquidity Reporting (LCR) and Market Conduct Reports alongside the other data findings listed. 

For Market Conduct Reports, only firms engaging in specific types of trading are typically subject to additional reporting here, such as MiFID II transaction reporting. 

Make sure you know whether you’re required to submit either an LCR or Market Conduct Report ahead of time, to ensure you’re able to have the appropriate findings on time. Head over to the FCA reporting handbook for detailed information on what is required of your firm. 

Are There Penalties for Non-Compliance?

It’s crucial to be aware of the exact FCA reporting data you’re expected to submit, as well as the correct submission dates, as penalties for non-compliance can be awarded. 

Penalties can range from financial fines to restrictions on your business operations. Ensuring your firm has strong financial reporting processes and systems in place to comply with these obligations can help avoid missed deadlines. Plus, regularly reviewing your internal controls and risk management practices can help you meet the FCA’s stringent reporting requirements.

If you need a hand with preparing or submitting your financial reports to the FCA, don’t hesitate to get in touch. Our experienced team are more than happy to help.

Want to know how your firm can become FCA-regulated? Learn more about the FCA-regulation process over on our site.

How Haggards Crowther Can Help You With FCA Reporting

The Outsourced Accounting Team at Haggards Crowther has a wealth of experience in FCA regulation – we’re happy to help your business report the appropriate findings on time. 

We work with a variety of clients, from new start-ups to well-established global organisations, so we’re able to assist no matter the size of your business. Get in touch with us today to discover how we can help you with FCA reporting for your firm. 

You can contact our main office by phone on 020 7384 0920 or send an email to enquiries@haggards.co.uk. Alternatively, fill out the form on our contact page to schedule a complimentary 30-minute consultation.

Chris Ropner ACMA

With over 18 years of experience in the management information sector, Chris understands the value that innovative software solutions can offer clients, especially when fused with seasoned professionals who are capable of managing data input. He highlights that it’s the most effective way to provide clients with detailed information on how their business is performing on a regular basis.