The regulator said this was in response to its letter to the Prime Minister regarding growth in the financial services sector, resulting in more free time and resources for firms.
It is proposing removing data collection requirements that do not provide useful data or duplicate information.
The FCA said it also wanted its handbook to remain fit for purpose and reflect the current regulatory framework, which could mean simplifying it by removing certain guidance and making it clearer.
The regulator said that by improving the standard of data collected, this could allow it to focus on useful information to detect emerging consumer risks and intervene faster.
The proposals are also expected to reduce barriers to entry for firms, reduce administrative work and lower costs.
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Changes for mortgage advisers
The FCA proposed no longer collecting information through section F of the Retail Mediation Activities Return (RMAR), RMA-F, which applies to mortgage advisers, general insurance advisers, financial advisers and wealth managers.
It said nearly 11,000 firms submit this return every six months, asking firms to confirm any changes to their close links or controllers. The regulator identified that the information was available from other sources and said it would stop collecting this.
Removing this requirement will not mean firms will stop notifying the regulator of any changes to close links or controllers, but this will continue to be collected through SUP 11 requirements.
The FCA has also suggested removing the requirement for firms to notify it within 20 business days if three complaints have been upheld for a single adviser in any 12-month period, and if a single complaint is upheld and the compensation exceeds £50,000.
It will use firm-level data collected through other complaints instead.
Its consultation will close on 14 May.
Jessica Rusu, chief data, intelligence and information officer at the FCA, said: “In our strategy, we committed to being a smarter regulator and supporting growth. So while we need data to do our job, we should challenge ourselves on whether what we’re asking for is needed.
“We’re getting rid of these data requests, saving time and money for thousands of firms, and we will review more in the future.”
To help support firms with more streamlined reporting, the regulator recently launched the My FCA portal, which gives firms a single sign-in and all regulatory tasks in one place.
