The Financial Conduct Authority will overhaul the way firms report complaints to them.
The regulator plans to replace five separate existing complaints returns with a single consolidated return, simplifying the reporting process for firms and reducing the amount of duplication.
It said the changes will improve data quality and strengthen consumer protection across the sector.
A key feature of the new process is the requirement for firms to report complaints involving customers in vulnerable circumstances. It will enable the FCA to monitor outcomes for those at risk and ensure that firms are providing appropriate support to those customers.
Sarah Pritchard, deputy chief executive of the FCA, said: “These improvements are a significant step forward in ensuring transparency and consistency across the sector. By streamlining returns and introducing clearer guidance, we’re making it easier for firms to provide high-quality complaints data while strengthening our ability to protect consumers, particularly those who are most vulnerable.”
The FCA will also introduce improved guidance and fixed six-month reporting periods for all firms, which it said will provide timely insights, drive better benchmarking and help ensure that consumers and the market benefit from high-quality, actionable complaints data.
The first reporting period under the new process will run from 1 January to 30 June 2027.
Richard Pinch, senior director of risk at Broadstone, welcomed the news.
“It delivers on the regulator’s objectives of cutting additional burdens on firms without losing, and indeed building, consumer protections.
“The additional granularity in data that the regime will create is to be welcomed as it will ensure accountability at firm level, more efficient regulatory scrutiny and a greater ability to intervene on behalf of consumers. The new regime will begin at the start of 2027 giving firms plenty of time to prepare and deliver a smooth transition to the new reporting processes.”
