How to prepare and submit required regulatory returns

The Bottom Line

To keep your business legal and compliant in the UK financial services sector, you must submit regular "regulatory returns"—standardised reports that prove to your regulator (usually the Financial Conduct Authority, or FCA) that your firm is financially sound, properly insured, and treating customers fairly. Failure to submit these on time can result in automatic "late return" fines of £250 or more, and potentially the loss of your permission to trade.

What are Regulatory Returns?

Think of regulatory returns as a health check for your business. Just as you file accounts with Companies House or tax returns with HMRC, these returns provide specific data to your regulator about your regulated activities. They are used to monitor risks across the industry and ensure that firms are not going bust or mistreating clients.

If you are directly authorised by the FCA, you will primarily use a system called RegData to submit these reports. If you belong to a professional body (like the ACCA for accountants or the CII for certain advisers), they may have their own separate reporting requirements.

Common Types of Regulatory Returns

The specific reports you need to file depend on the "permissions" your business has. However, most small financial firms will encounter the following:

• Retail Mediation Activities Return (RMAR): A comprehensive report covering financial data, client money, and professional indemnity insurance.
• Complaints Returns: Even if you have received zero complaints, you must usually submit a "nil return" to confirm this.
• Product Sales Data (PSD): Reports on the specific types of products you have sold to customers.
• Financial Resources: Data proving you have enough "capital adequacy" (cash in the bank) to meet regulatory requirements.

How to Manage Your Submissions

Managing your returns is all about organisation. Use this step-by-step approach to stay on top of your obligations:

1. Access RegData: Once authorised, ensure you have your login details for the FCA’s RegData portal. This is where your specific reporting schedule is housed.
2. Identify Your Reporting Frequency: Returns aren't all due at the same time. Some are quarterly, some half-yearly, and some annual. Your "reporting accounting date" (usually your financial year-end) dictates these deadlines.
3. Build a Compliance Calendar: Do not rely on memory. Map out every deadline for the next 12 months in a shared business calendar with alerts set for 30 days and 7 days before each due date.
4. Gather Data Early: Most returns require specific figures, such as your total regulated revenue, number of clients, or details of your Professional Indemnity Insurance (PII) policy.

A Typical Reporting Schedule

While every firm is different, here is an example of what a small firm’s schedule might look like:

Return NameTypical FrequencyCore Information NeededFinancial Data (RMAR Section D)Half-Yearly / AnnualProfit/Loss, Balance Sheet, and Capital levels.Complaints (RMAR Section J)AnnualNumber of complaints received and resolved.PII Details (RMAR Section E)AnnualPolicy numbers, excess amounts, and renewal dates.Threshold ConditionsAnnualConfirmation that the business is still "fit and proper."

Tips for Stress-Free Reporting

Accuracy is non-negotiable. If you realise you’ve made a mistake after submitting, you must notify the regulator immediately to correct the record. Intentional misreporting is a serious offence.

• Use Your Software: If you use specialist financial CRM or accounting software, many can generate the data required for the RMAR at the click of a button.
• The "Nil" Return Rule: Never ignore a return just because you haven't done any business in that category. You must still log in and submit a "Nil" return to show you haven't forgotten.
• Delegate, But Supervise: You can ask a compliance consultant or an accountant to prepare the data, but as the business owner, you are legally responsible for the accuracy of the submission.
• Keep Records: Always download and save a PDF copy of the submission confirmation from the portal for your own audit trail.

By treating regulatory returns as a routine part of your business operations rather than a last-minute panic, you protect your reputation and ensure your business remains on the right side of the law.