PS23/3 – Creation of a baseline financial resilience regulatory return: Feedback to CP22/19 and final rules

Read PS23/3 (PDF)[1]

What we are changing 

We are replacing the FCA Financial Resilience Survey with a new financial resilience regulatory return. This will be referred to as ‘FIN073 – Baseline Financial Resilience Report’.  

Who this is for

This Policy Statement applies to all FCA regulated firms except:  

• a credit broker 
• a MIFIDPRU investment firm 
• a not-for-profit debt advice body  
• a PRA-authorised person  
• a supervised run-off firm  
• a TP firm 

The changes also apply to:  

• an authorised electronic money institution  
• an authorised payment institution 
• a registered account information service provider  
• a small electronic money institution 
• a small payment institution 
• a UK RIE

Next steps 

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. 

We are also consulting simultaneously on changing the scope of FIN073 to include full permission consumer credit firms. These firms are currently excluded from the rules considering that they are captured under the definition of Credit Brokers.  

We will publish our final position in relation to the scope in Summer 2023, following the closure of CP23/9[2] in June 2023.  

Background 

High quality baseline financial resilience data is essential in helping us to understand the risk of firm failure and risks across the financial services sector. It improves our ability to protect consumers and ensure market integrity. And ultimately, it helps reduce harm from firm failure. 

However, the current approach of collecting the data through ad hoc surveys places significant administrative burden on firms. So, we are proposing to rationalise and standardise this data collection in the form of a regulatory return.