Insights
FCA Reduces Reporting Burden for 36,000 Firms Under SMCR
On the 28th August 2025, the Financial Conduct Authority (FCA) announced a reduction in data reporting requirements, easing the administrative burden on thousands of regulated firms.
This change removes the need to submit nil returns under the Senior Managers and Certification Regime (SMCR), is effective immediately and impacts around 36,000 organisations, representing 95% of those regulated by the FCA.
Changes for Firms
Previously, firms were required to submit a REP008 return despite having nothing to report, such as no disciplinary actions against non-senior managers for conduct rule breaches. Now, under the FCA’s changes, firms will no longer be obligated to file a nil return.
The FCA has emphasised that organisations must still submit a REP008 when disciplinary action is taken against certification staff or non-senior managing directors. Employees with significant impact on the firm and its customers such as; traders, risk takers or staff overseeing client money, are all classified as certification staff.
Jessica Rusu (Chief data, innovation and intelligence officer)
‘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.’
Additional Reporting Reductions
This change is part of a broader FCA initiative to streamline reporting which was first proposed in June, in which three returns were removed.
Why this Matters for Your Firm
This represents a reduction in administrative overheads for many firms, however it does not change the underlying obligations of the SMCR. Organisations must continue to maintain strong governance frameworks, monitor employee conduct and report to the FCA any relevant disciplinary actions.
While the removal of nil returns reduces repetition it also creates a new risk that firms must ensure that genuine cases are still identified, escalated and reported accurately if such case arises.
Please contact us at info@objectivus.com if you have any questions or require further clarity on the points raised.