The FCA is consulting with the industry on a proposal to reduce its fee for overdue or late regulatory returns from £250 to £100.

The regulator says the change would make the fee fairer and more proportionate, particularly for smaller firms and those with limited resources.

The move has been prompted by changes since the fee was introduced.

The FCA has made changes to processes, including how fees are paid, and earlier this year launched its 'My FCA' dashboard for regulated firms to make admin easier.

The watchdog says this has resulted in, “an increased compliance rate” among firms. My FCA is now being used by 80% of firms.

The new proposals will also provide clearer guidance and improved notifications to help firms avoid unnecessary admin fees.

The FCA said it also proposes to remove three more data collections for insurance firms that are no longer needed.

The FCA said: “The consultation reflects our ongoing commitment on continuously improving regulatory processes. Our proposals demonstrate a smarter approach to regulation by streamlining compliance and reducing firm burdens.”

The regulator said it would delay sending late fee notices to firms with returns due between 22 December to 5 January. Firms will not receive a late fee unless the returns remain overdue on 6 January 2026.

• The consultation can be found here: December 2025 QCP chapter on Late Fee Reduction.