The FCA's New Baseline Financial Resilience Regulatory Return

The Financial Conduct Authority (FCA) has published a new policy statement (PS23/3) on the creation of a baseline financial resilience regulatory return (FIN073). The return will collect data from solo-regulated firms on a quarterly basis to help the FCA understand their financial resilience.

The FIN073 return will collect data on a range of factors, including:

Liquidity

Capital

Risk management

Governance

Resilience

The FCA will use the data from the FIN073 return to assess the financial resilience of firms and to identify any areas where they need to improve. The data will also be used to inform the FCA's supervisory activities.

The FIN073 return will be mandatory for all solo-regulated firms, except for those that are exempt from the requirement. The return will be submitted through the FCA's RegData platform.

The FCA is currently seeking feedback on PS23/3. The feedback deadline is 12 August 2023.

Benefits of the FIN073 Return

The FIN073 return will provide a number of benefits for the FCA and for firms. For the FCA, the return will help to:

Understand the financial resilience of firms

Identify any areas where firms need to improve

Inform the FCA's supervisory activities

For firms, the return will help to:

Assess their own financial resilience

Identify any areas where they need to improve

Demonstrate their financial resilience to the FCA

Conclusion

The FIN073 return is a new initiative by the FCA to collect data on the financial resilience of firms. The return will provide a number of benefits for the FCA and for firms. The FCA is currently seeking feedback on PS23/3. The feedback deadline is 12 August 2023.

https://www.fca.org.uk/publications/policy-statements/ps23-3-creation-baseline-financial-resilience-regulatory-return-feedback-cp22-19-and-final-rules