Hedron working with FCA on Transforming Data Collection Programme

Hedron Network is working directly with the FCA to assist them in their data strategy work, aimed at improving efficiency in the market and reducing firms’ administrative burdens. 

Transforming Data Collection is a joint transformation programme between the FCA, the Bank of England, and the UK financial industry.  

Specifically, the regulator is seeking a better understanding of how insurance brokers use accountancy software in managing profit and loss, balance sheet, and related information, and ultimately whether this could be shared directly with the regulator in digital format, with consent. This has the potential to remove the need for certain periodic RMAR returns. 

What is the Transforming Data Collection programme about? 

The programme is focusing on the aim that the regulator should collect the data it needs at the lowest cost to industry. Central to this are three key reforms: 

1. Defining and adopting common data standards so that firms and regulators know they are talking about the same thing 

1. Modernising reporting instructions to make them easier to understand 

1. Integrating reporting so regulators don’t ask for the same data twice but in different places, and ensure it’s asked for in the most efficient way. 

Within these reforms, there are two key focus areas which are especially relevant for brokers:  

• Setting Data Standards: Working with industry to adopt common data standards across the financial services sector 

• Automated Reporting: Exploring if it is possible to use machine readable code to interpret reporting requirements for firms 

How will this benefit brokers? 

If accounting and regulatory systems can interact automatically, then firms should be able to spend less time on collating information for the regular returns, ensuring it is accurate, and then submitting and validating it. 

Specific benefits for brokers could include eliminating the need for the RMA- A (Balance Sheet) and RMA- B (Profit and Loss Account) returns. 

Getting involved 

Broker input is essential to informing this work, which has the potential to transform how data is shared with the regulator, decreasing the reporting burden for firms.   

If any Hedron partner broker using accounting software such as Sage, Xero or similar would like to be involved, please contact your Hedron Compliance Consultant or email  compliance.support@hedronnetwork.co.uk and we'll put you in contact with the FCA digital team. 

Find out more at transformingdatacollection.co.uk