COMPLAINTS Upcoming FCA Changes: What You Need to Know

FCA consults on improving the complaints reporting process

On 22 May 2025, the Financial Conduct Authority (FCA) published a consultation paper, CP25/13 on improving the complaints reporting process.

The FCA has recognised that the current complaint reporting regime, which was last updated in 2015, is no longer fit for this purpose. As part of its 5-year strategy to be a “smarter regulator”, it has launched a consultation to:

• Simplify how complaint data is reported.
• Consolidate five overlapping returns into a single, standardised return.
• Align reporting frequency across all firms, regardless of accounting reference dates.
• Clarify complaint categorisations, which are currently outdated and inconsistent.

Currently, over 40% of firms must complete multiple overlapping returns, creating inefficiencies and increasing the risk of errors. The new model is designed to streamline the process and give the FCA more timely, consistent data to identify risks of consumer harm.

Background

• The FCA has collected complaints complaints data from regulated firms since 2002, and uses this data to help it understand market trends, identify current or emerging harms to consumers, and improve its understanding of consumer complaint outcomes.
• However, it notes that it has not conducted a wholesale review of its complaints data collection since 2015, and since then its regulatory remit has expanded to cover new areas of activity, some of which have adopted their own complaints reporting processes, potentially duplicating work and creating inefficiency.

Proposals

• CP25/13 sets out proposals intended to simplify how regulated firms report complaints to the FCA, make the process more efficient, effective and consistent, and improve the quality of the data it collects.
• It explains the improvements the FCA proposes to make to its data collection and why, and discusses how the proposals should improve firms’ experience of reporting complaints and the broader benefits the FCA expects for consumers.

Next steps

📅 Deadline for consultation responses: 24 July 2025 📘 A Policy Statement will follow later this year, with firms likely given a 12-month implementation period.

The FCA plans to consider all responses and publish a policy statement in 2025.

Source  

https://www.fca.org.uk/publications/consultation-papers/cp25-13-improving-complaints-reporting-process

https://www.regulationtomorrow.com/eu/fca-consults-on-improving-the-complaints-reporting-process/