The FCA is to go ahead with a simplified complaints process to make it easier for firms to report consumer complaints to it.

The regulator says the improvements should improve the quality of data and provide stronger consumer protection.

Under the plans, five separate existing complaints returns will be replaced by a single consolidated return. The FCA says this will “simplify reporting for firms, reduce duplication, and support more consistent and comparable data collection.” 

A key part of the new process is a requirement for firms to report complaints involving customers in vulnerable circumstances. The watchdog says this will enable it to monitor outcomes for those at risk and ensure that firms are providing appropriate support to those customers. 

Sarah Pritchard, deputy chief executive of the FCA, said: "These improvements are a significant step forward in ensuring transparency and consistency across the sector. By streamlining returns and introducing clearer guidance, we’re making it easier for firms to provide high-quality complaints data while strengthening our ability to protect consumers, particularly those who are most vulnerable.”

“We will also introduce improved guidance and fixed 6-month reporting periods for all firms. This will provide timely insights, drive better benchmarking, and help ensure that consumers and the market benefit from high-quality, actionable complaints data.”

The FCA said the changes reflected the FCA’s commitment to protecting consumers and being a ‘smarter regulator’, while reducing unnecessary admin burdens on firms.

There will be a transition to the new process with the first reporting period under the new process running from 1 January to 30 June 2027.

Richard Pinch, senior director of risk at financial services consultancy Broadstone, said: “The finalised complaints rules from the FCA will make it simpler for firms to report and improve transparency whilst simultaneously strengthening protections for vulnerable customers. It delivers on the regulator’s objectives of cutting additional burdens on firms without losing, and indeed building, consumer protections.

“The additional granularity in data that the regime will create is to be welcomed as it will ensure accountability at firm level, more efficient regulatory scrutiny and a greater ability to intervene on behalf of consumers. The new regime will begin at the start of 2027 giving firms plenty of time to prepare and deliver a smooth transition to the new reporting processes.”