Proposals in the FSA's Consultation Paper 198 mandating electronic reporting for all regulated busin...
Proposals in the FSA's Consultation Paper 198 mandating electronic reporting for all regulated businesses, including reporting of complaints data, will force all remaining regulated and unregulated intermediaries to brush up on their internet skills.
CP 198 Regulatory Reporting – A New Integrated Approach proposes mandatory electronic reporting for all regulated firms by 2007.
The new rules will implement XML and XBRL document standards, indicating that the reporting process will be completely online-based.
The imposition of electronic reporting will force some sectors into sharp changes. According to one report, up to 20% of members in the British Insurance Brokers' Association do their work without the aid of email or online quotes. Compliance with the new mandatory rules will drag these brokers into the internet age.
CP 198 proposes that retail investment firms, and mortgage and insurance intermediaries – who, of course, are coming under the FSA's regulatory umbrella by next year – adopt electronic reporting by the second quarter of 2005.
"The new mortgage and general insurance activities are expected to bring in many thousands of previously unauthorised firms into the scope of our regulation," the FSA says.
"The information we need to regulate these new, mainly small firms, is similar to that needed for existing small authorised firms. As a result, from 2005, reporting for the vast majority of authorised firms will be accomplished through a single, integrated, electronic return."
The FSA says its proposals will make life easier for regulated firms and individuals because they will:
"We plan to develop a single integrated reporting framework that will eventually replace all the existing separate reporting forms that a firm is required to complete," the FSA says.
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