
What Should FCA-Regulated Firms Know About Financial Reporting?
20th October, 2024
If you’re part of an FCA-regulated investment management firm, navigating the financial reporting requirements can sometimes feel a bit overwhelming. The rules can be complex, and it’s not always clear what’s expected by the UK’s Financial Conduct Authority (FCA).
In this article, we’ve made things easier by breaking down the key reporting obligations into simple, bite-sized sections. While these requirements can vary depending on your firm’s activities, we’ll guide you through the main reports that most firms are required to submit. Let’s take a closer look and simplify the process!
1 – Annual Financial Statements
- Firms are required to submit audited annual financial statements. These statements include a balance sheet, profit and loss account, cash flow statement, and notes to the accounts.
- When it’s due: These are usually required within four months of the firm’s accounting reference date.
2 – Capital Adequacy Reporting
- This involves reporting on capital adequacy, liquidity, and risk exposure. FCA-regulated firms must submit capital adequacy reports to demonstrate that they meet the necessary capital requirements.
- How often: Typically submitted quarterly but can vary depending on the firm’s category.
3 – Client Money and Assets Return (CMAR)
- If the firm holds client money or safe custody assets, it must submit a CMAR, which provides details about how it protects client funds and assets.
- How often: Monthly or Quarterly reporting, typically by the 15th of the following month.
4 – RegData Financial Reporting (FCA Financial Reports)
- Firms are required to submit various financial returns via the FCA’s RegData system, including balance sheets, profit and loss accounts, and key risk metrics.
- How often: This varies depending on the firm, but it often needs to be submitted quarterly or annually.
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 under the new Investment Firm Prudential Regime (IFPR). This replaces the previous ICAAP (Internal Capital Adequacy Assessment Process).
- How often: Annually, but subject to ongoing review by the firm’s management.
6 – Other Reports
- Liquidity Reporting (LCR): Firms may also need to report on their liquidity coverage ratio.
- Market Conduct Reports: Firms engaging in specific types of trading may be subject to additional reporting, such as MiFID II transaction reporting.
7 – FCA Fees and Levy Reports
- Firms must file returns that allow the FCA to calculate their annual fees and levy contributions. These may include details of their business activities and income.
Penalties for Non-Compliance
If you’ve missed a deadline or submitted inaccurate financial reports, you could face penalties from the FCA. These can range from fines to restrictions on your business operations.
That’s why it’s crucial for FCA-regulated firms to have strong financial reporting processes and systems in place to comply with these obligations. Regularly reviewing your internal controls and risk management practices can help you meet the FCA’s stringent reporting requirements.
Learn more about how to become FCA-regulated here.
If you need a hand with preparing or submitting your financial reports to the FCA, don’t hesitate to get in touch.
The Outsourced Accounting Team at Haggards Crowther has a wealth of experience in FCA regulation. We work with a variety of clients, from new start-ups to well-established global organisations, and we’re more than happy to assist you.

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.