The FSA has confirmed the framework for integrated regulatory returns and that mandatory electronic reporting (MER) will be introduced for most regulated firms.
The principle aims of electronic reporting are to simplify and streamline the current paper-based process while reducing reporting costs to firms, said the regulator.
FSA regulatory services business unit managing director David Kenmir said: “The new system is an important development in the FSA's aim to be an organisation which is more effective and easier to do business with.
“The new integrated regulatory return (IRR) will be based on the type of business firms undertake and will align reporting periods with firms' financial years enabling them to use the information they already generate for their own business purposes, for regulatory purposes too.”
The FSA said it proposed to phase in MER over the next few years, requiring regulated firms to submit their integrated returns to the FSA electronically using either a web browser form or direct system-to-system transfer.
MER will start on 1 April 2005 for firms coming under the new general insurance and mortgage regulatory regime and for IFAs and other retail investment firms.
At the same time mandatory electronic reporting of complaints data will be introduced for almost all firms.
It said it expected to implement MER for other regulated activities concluding with deposit takers in 2007.
