Consumer Credit: The FCA Is Changing Its Data Requirements

The FCA is planning to significantly change the way consumer credit firms report on certain regulated activities. On 12 September it published proposals in relation to new regulatory reporting requirements for all Credit Broking, Debt Adjusting, Debt Counselling and Providing Credit Information Services activities.

The FCA says that the current reporting system, introduced in 2014, is too broad and non-specific for the current market. Over the last 10 years, the market has seen fundamental changes to the business models used by firms, methods for staff remuneration and incentives, and credit broker fee structures;therefore data requirements have also shifted. Additionally, the FCA now needs to collate information in a different way in order to monitor firms' compliance with the ever pervasive FCA Consumer Duty. The FCA wants to be able to collect better quality information, with a view to targeted intervention where required to protect consumers.