FCA Quarterly Consultation No. 48: What Firms Need to Know

Introduction

On 6 June 2025, the UK’s Financial Conduct Authority (FCA) issued CP25/16, a Quarterly Consultation Paper (No. 48). The consultation outlines a series of targeted proposals to update the FCA Handbook, covering enforcement powers, data reporting regimes, crypto-asset access, derivatives reporting, consumer credit data collection and assessment of value reporting.

This article summarises the six main sections of CP25/16 that firms should review to ensure ongoing compliance. These consultations provide valuable insights into the FCA’s regulatory priorities and highlight areas where firms may need to review and enhance their systems and controls.

Strengthening Enforcement: SUP 6.4 & FSMA Section. 415AA

The FCA is proposes updates to SUP 6.4 to reflect the enforcement provisions introduced under Section 415AA of the Financial Services and Markets Act 2000 (FSMA), which came into force in August 2023. This section enables the FCA to take enforcement action against firms for misconduct committed while they were authorised, even after they have cancelled their authorisation.

CP25/16 removes outdated guidance and reinforces the FCA’s enforcement powers. These changes aim to ensure continued accountability and deterrence, even post-authorisation.

Reporting Relief: Streamlining Returns

The FCA proposes to streamline regulatory reporting by removing the mandatory requirement for certain firms to submit the following returns:

REP008 (Threshold Conditions),

REP009 (Controllers Report),

REP022 (Client Money and Assets Return for Loan-Based Crowdfunding Platforms), and

Retail Investment Advice Complaints returns.

The aim is to reduce the burden of submitting persistent nil returns and ensure the FCA collects only the data necessary to meet its statutory objectives. This will ease compliance obligations and simplify firms’ reporting structures.

Retail Access to Crypto Exchange Traded Notes (ETNs)

CP25/16 proposes lifting the existing ban on the sale of crypto-asset ETNs to retail investors, provided these are:

Listed on a UK Recognised Investment Exchange; and

Subject to the financial promotions regime and appropriate consumer protections.

The proposed change reflects the FCA’s improved understanding of the crypto-asset market and the associated risks. The FCA notes that long-term confidence in this sector relies on continued regulation and robust consumer protection.

Under current powers derived from the Money Laundering Regulations (MLRs), the FCA continues to:

Exclude firms failing to meet financial crime standards;

Support consumers in identifying misleading or unfair cryptoasset marketing; and

Issue public warnings against scams and investment risks in the crypto space.

Importantly, the FCA is not proposing to remove the classification of these products as Restricted Mass Market Investments (RMMIs), meaning access will remain controlled.

Derivatives Reporting: EMIR Updates

The FCA plans minor technical amendments to UK EMIR (European Market Infrastructure Regulation) reporting requirements. This includes:

Updates to the XML reporting schema; and

Corrections to the Unique Trade Identifier (UTI) process.

These changes are scheduled for implementation on 1 December 2025, giving firms ample time to update internal systems and liaise with third-party vendors.

Proposed Consumer Credit Data Collection Changes

Following successful implementation of the CCR009 return, covering permissions such as credit broking, debt adjusting, and credit information services, the FCA proposes introducing a new return for the remaining consumer credit activities namely:

Lending,

Consumer hire,

Debt collection, and

Debt administration.

The aim is to align all consumer credit returns with calendar year reporting, enabling the FCA to decommission four existing returns (CCR002, CCR003, CCR006, and CCR007) and eliminate duplication.

In the interim, the FCA proposes amending CCR007 so that firms with limited permissions report on a calendar-year basis, aligning with CCR009 and reducing operational burdens.

Fund Managers: Streamlined Assessment of Value (AoV) Reporting

The FCA has acknowledged stakeholder concerns that the current COLL (Collective Investment Schemes Sourcebook) rules for Assessment of Value (AoV) impose more stringent requirements than those under the Consumer Duty. These include mandatory public AoV reports, the costs of which are perceived to outweigh the benefits.

In response, the FCA proposes to:

Streamline annual AoV reporting requirements for firms under COLL;

Align AoV expectations more closely with those under the Consumer Duty; and

Maintain high standards without excessive burden.

This is intended to level the playing field and reduce unnecessary cost, while ensuring ongoing protection for retail investors.

Conclusion and Next Steps

CP25/16 highlights important regulatory changes that firms should assess proactively. It signals areas of upcoming reform and evolving FCA expectations.

Firms should now:

Review their systems and controls;

Identify reporting and disclosure obligations impacted by these changes;

Begin internal alignment where appropriate, particularly in relation to calendar year reporting and EMIR enhancements.

The consultation has now closed, and further updates are expected from the FCA in due course.

How can Complyport Help?

Complyport can help your firm understand the FCA’s proposals, as well as the impact of these amendments to your firm, if these were to be implemented upon finalisation. We can support your firm by providing:

Regulatory Guidance: Insightful interpretation of the FCA’s proposals and tailored advice on the specific implications for your firm;

Policy and Framework Enhancement: Review and enhancement of internal compliance policies to ensure alignment with upcoming Handbook amendments and FCA expectations;