FSA Annual Report 2006/07 - Better Regulation Ltd

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Section three – Improving our business capability and effectiveness FSA Annual Report 2006/07 39 Table 3.1 Type of firm Banks Building societies Securities and futures firms (subject to the CRD) Average change in volume of data reported Securities and futures firms (not subject to the CRD) Investment management firms (subject to the CRD) Investment management firms (not subject to the CRD) 45% reduction 25% reduction 55% reduction 77% reduction 410% increase 28% increase Note: The above figures are drawn from the full impact analysis published as an addendum to PS07/1 Integrated regulatory reporting (IRR): Certain investment firms. They represent changes in volume of data at an individual firm level and are based on an average between the two methods used in the full analysis. For banks, building societies and securities firms the reporting requirements have reduced compared with those required under the previous regulatory regimes, even taking into account the impact of the CRD. For investment management firms, the increase in reporting by both CRD and non-CRD firms reflects the under-reporting required of these firms in their previous regulatory regimes. The proportion of our future reporting requirements directly attributable to the need to monitor compliance with the CRD is significant; over 30% for credit institutions and 80% for investment firms. The risk-based approach to setting capital requirements under the CRD gives firms greater flexibility, but is more sophisticated and so requires additional monitoring and reporting requirements depending on the complexity of an individual firm’s business. We have taken a proportionate approach to the reporting requirements and collect significantly less data than our EU counterparts. IRR is already in place for a large number of firms (mainly mortgage and general insurance intermediaries and retail investment advisers) through submitting the Retail Mediation Activities Return (RMAR), the Mortgage Lending and Administration Return (MLAR) and the Complaints return. Firms have continued to become more familiar with these returns and this has been reflected in the number of returns submitted on time, which has improved from 76% in 2005/06 to 82% in 2006/07. In 2006/07 we cancelled the permissions of 98 firms who failed to submit returns and charged around 3,000 firms an administrative fee for submitting late returns. In April 2007 we cancelled the permissions of two firms who had repeatedly failed to submit their RMARs on time. During the year we completed the first phase of our review of the effectiveness of the RMAR, which is submitted by over 90% of the firms we regulate. The average number of queries on the RMAR to our Firm Contact Centre is half the figure for the previous year. Feedback from firms shows that most concerns were about the capital section of the RMAR. We have carried out targeted market research to gain a more detailed understanding of the issues, and we will use the results of this to further improve training and guidance for firms. FSA Register During the year we have made a number of improvements to the FSA Register, which is available on our website and contains information on regulated firms and individuals. We have received positive feedback on these improvements from users. We have: • improved the response times of the Register during busy periods (the number of times users have not been able to view the Register has reduced from 15,700 for the four months December 2005 to March 2006 to 53 across the same period to the end of March 2007); • enhanced the facilities for searching for firms, individuals and collective investment schemes; • added additional historical information and information on appointed representative firms; • introduced a ‘Register News’ section to keep users informed of service availability and Register developments; and • enabled users to print a copy of individual Register pages. Mutuals registration system In addition to our responsibilities under FSMA we also register and record documents on behalf of mutual societies, and in May 2006 we introduced a new mutuals registration system. We developed the system following discussions with the industry and were assisted by Co-ops UK, a mutuals sector sponsoring body. Our new system improves the processing of applications for registering and submitting annual returns and is the first electronic register of mutual societies to be made available to the public.
40 Section three – Improving our business capability and effectiveness FSA Annual Report 2006/07 Service standards Chart 3.1: Performance against service standards We are committed to improving our service to firms, consumers and other stakeholders. Our service standards apply to all aspects of our work including replying to correspondence, answering the telephones in our Contact Centres and regulatory decisions. We publish a twice-yearly account of our performance against our service standards on our website and in October 2006 we improved the format to make it easier to understand. During the year we continued to see an improvement in all the areas of our service that we measure (see Chart 3.1). 100% 80% 60% 40% 20% 0% Met (100%) Not Met (>90%) Not Met (
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FSA Annual Report 2006/07 - Better Regulation Ltd

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