The FCA is to reduce or remove regulatory returns for 95% of regulated firms, it said today.

The move should help lower the red tape burden for 36,000 firms, the regulator said.

According to the regulator, the change will make data reporting, “more proportionate by reducing and removing regulatory returns for 95% of all authorised firms.”

The watchdog said that 36,000 firms will now no longer need to submit a nil return when completing certain tasks relating to disciplinary action (REP008 - Conduct Rules reporting for solo-regulated firms), saving them time and reducing tasks.  

The FCA said that if there’s nothing to submit firms will no longer need to take any action.  

Jessica Rusu, chief data, innovation and intelligence officer at the FCA, said: “We only ask for the data we need, making sure it's proportionate, to reduce unnecessary burdens. Our focus is on collecting information that adds real value, while making it easier for firms to meet their regulatory obligations.”

The change is part of the FCA’s Transforming Data Collection initiative.

Changes consulted on by the FCA in June included decommissioning REP022 (General Insurance Pricing Attestation) and retail investment advisers (RIA) complaints, reducing the frequency of reporting for REP009 (Consumer Buy-To-Let Mortgage Aggregated Data) and removing the requirement to submit nil returns for REP008 (Notification of Disciplinary Action relating to conduct rules staff – other than senior manager functions).

Earlier in 2025 the FCA said it would remove 3 returns, reducing the burden for 16,000 firms.

The FCA said: “These changes reinforce our commitment to cutting low-value reporting, improving data use and becoming a smarter regulator.”

• Financial Planning Today Analysis: This reduction in data reporting, and other recent similar changes, underline the FCA’s commitment to reduct the regulatory burden on firms, particularly smaller firms. The trend of reduction in red tape seems set for now with further reductions in data reporting likely. The FCA has to tread a fine line, however; on the one hand being a smarter, data-led regulator, as it has said publicly, and on the other hand pleasing the Chancellor and Treasury in reducing red tape in the financial services sector to spur growth. In the mean time many advisory firms, in particular, will welcome the reduction in regulatory tasks with limited value.