The FCA is set to publish a guide on how it uses the data advisers submit in regulatory returns.
In its monthly round-up ,published yesterday, the regulator says after speaking to advisers at its Live and Local engagement events, it found firms wanted to know more about how the FCA uses the data they provide to its Gabriel reporting system.
The regulator has also updated its online Gabriel training package, and will point out some common reporting errors firms make.
FCA director of policy David Geale says: “We received and continue to draw valuable insights from this engagement. Firms are interested in getting a better understanding of what we do with the data we collect and why we need it [and] there isn’t always awareness of some of the resources that are available to help firms with their submissions.
“Following feedback, we will soon publish an overview of why we collect Retail Mediation Activities data.
“We will outline the rationale for collecting the data, why we need it in an electronic format, and how it feeds into our wider supervisory approach. It will also draw attention to some common RMA misreporting errors that firms should avoid.”
Last week, Money Marketing reported on advisers’ concerns about the lack of clarity over how regulatory returns are used.
A former supervision team member at the FCA has since defended the system to Money Marketing.
They say: “I used the data when I was there, like on retirement planning and A-Day, to help inform what was going on in the market and start a strategy for supervision.
“Selecting firms for supervision work, you could look at the ratio of supervisors to advisers to indicate where there might be supervisory weaknesses, so sometimes the regulator can use the data intelligently.”
Separately, the FCA has also set out guidance on firm’s use of communications. The regulator says it will investigate instances where firms have given “unhelpful” disclosures or risk warnings to consumers.