FCA financial resilience survey - October 2023
What has happened?
In September 2023, the FCA asked a number of firms to complete a survey to help the regulator understand how the current financial climate is impacting FCA solo-regulated firms.
What are the key points?
The FCA is planning to send this survey to the relevant firms in Tranche 1 on one of the following dates:
Batch 1: to be sent on 9 October 2023 - response due by 30 October 2023
Batch 2: to be sent on 10 October 2023 - response due by 31 October 2023
Batch 3: to be sent on 11 October 2023 - response due by 1 November 2023
Batch 4: to be sent on 13 October 2023 - response due by 3 November 2023
and to firms in Tranche 2 on the following dates:
Batch 1: to be sent on 16 October 2023 - response due by 6 November 2023
Batch 2: to be sent on 17 October 2023 - response due by 7 November 2023
Batch 3: to be sent on 18 October 2023 - response due by 8 November 2023
Batch 4: to be sent on 20 October 2023 - response due by 10 November 2023
The FCA will send a warm-up/introduction e-mail to all the firms at least one week prior to them receiving the survey. This survey will include nine questions in total, designed to give information about the following areas:
• Liquidity/cash availability and needs,
• Recent financial performance, and
• Scale of business activity
Firms in the Temporary Permissions Regime and Supervisory Run-off Regime can expect to receive this same survey, based on the timeline above.
In addition, the FCA is replacing the FCA Financial Resilience Survey with a new financial resilience regulatory return. This will be referred to as ‘FIN073 – Baseline Financial Resilience Report’. Firms that will be brought into scope of FIN073 will need to be prepared to submit the return when it is due, from January 2024. Firms will receive an automated reminder via RegData when the return is available for submission.
The FCA still requires firms to complete the financial resilience survey when requested to do so by us until the new return comes into force.
Firms will be emailed a link to complete the survey online (not through RegData). It is designed to be easy to complete even via a mobile phone, and most firms will not need more than an hour to complete it.
Completion of the survey is mandatory under section 165 of the Financial Services & Markets Act (FSMA) 2000. The FCA may exercise its powers under FSMA for firms that do not respond.
How can Thistle Initiatives help?
Thistle Initiatives has supported firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, our team of specialists can serve as your right hand in meeting and complying with FCA regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
Are you looking for help with your financial resilience or FCA reporting arrangements, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to info@thistleinitiatives.co.uk.