FCA believe that, due to the current economic situation, Firms are facing financial stresses which can cause significant pressures including financial ones. As a result, the FCA are seeking to understand the effect that the current financial climate is having on the finances of regulated firms in an attempt to better guide their supervisory actions and powers.
Many Firms will be aware that the FCA issued the first phase of the Covid-19 Impact Survey between June and August 2020, covering around 23,500 firms. Since then, the FCA have repeated this survey five more times. The survey helped the FCA to obtain an accurate view of the impact of Covid-19 on Firms and assisted in mitigating the risks of harm to consumers, the market and competition within it.
FCA have signalled its intention to repeat this survey for a seventh time, however the survey is likely to cover other recent matters which may affect Firms in addition to Covid-19.
There have been some modifications of the survey for this phase, which include: an update of the title of the survey to more accurately reflect its purpose and simplifying the format of the form to make for easier completion.
However, the information firms are required to provide will remain the same.
The FCA intend to send this survey to the relevant firms in Tranche 1, on one of the following dates:
Batch 1: to be sent on 13 June 2022 – response due by 4 July 2022
Batch 2: to be sent on 14 June 2022 – response due by 5 July 2022
Batch 3: to be sent on 15 June 2022 – response due by 6 July 2022
Batch 4: to be sent on 17 June 2022 – response due by 8 July 2022
Firms should receive an introduction email at least one week prior to receiving the survey. Following this introduction email, Firms will be emailed a link to complete the survey online (not through RegData). The link that will be sent is designed to be unique to each firm. If firms need a different individual within their organisation (or a consultant) to answer and submit the survey, the link can be forwarded to the required person.
Completion of the survey is mandatory under section 165 of the Financial Services & Markets Act (FSMA) 2000. The FCA are able to exercise their powers under FSMA for firms who do not respond. If, due to exceptional circumstances, a firm cannot access its financial information, they will need to ensure that they complete the questions where the relevant information is available.
This survey will include nine questions in total, and is designed to capture information about the following areas of the Firm’s business model:
- Liquidity/cash availability and needs
- Recent financial performance
- Scale of business activity
The survey will be sent to all firms in the following Tranche 1 portfolios unless they satisfy specific exclusion criteria:
- E-Money Issuer
- High Cost Lenders
- Payment Services Firm
- Peer-to-Peer lending platforms
- SIPP Operators
- Advisers and intermediaries
- Contracts for Differences (CFD) Providers
- Credit reference agencies and providers of credit information services
- Crowdfunders
- Custody Services
- Debt purchasers, debt collectors and debt administrators
- Mainstream Consumer Credit Lenders
- Personal and Commercial Lines Insurance Intermediaries
- Platforms
- Wealth Management
Please co-operate and complete the survey in good time.
