The Financial Conduct Authority (FCA) published findings from a review of the data quality of prudential regulatory reporting by solo-regulated investment firms and groups in scope of the Investment Firms Prudential Regime (IFPR) and the MIFIDPRU sourcebook. The review found that around 60% of firms passed all data quality tests, 30% showed improving but non-systematic misreporting, and around 10% were not meeting reporting requirements due to recurring errors; the FCA emphasised that it is not introducing new reporting requirements or guidance. The assessment covered MIFIDPRU regulatory returns submitted via RegData for reporting periods from January 2024 to March 2025, spanning approximately 3,800 firms and 323,000 tests of consistency with MIFIDPRU guidance, comparability with alternative sources, and plausibility of changes over time. The FCA highlighted good practice in consistent reporting across periods (around 90% of firms) and cross-validation of K-factor requirements between MIF001 and MIF003 (85% accurately derived). Key improvement areas included inconsistencies between MIF007 and firms’ Internal Capital Adequacy and Risk Assessment (ICARA) documents, non-compliant reporting of the Own Funds Threshold Requirement (OFTR) in MIF001 (20% of firms), misclassification or incomplete reporting affecting small and non-interconnected (SNI) versus non-SNI status, and data entry and unit issues, including the requirement to report monetary figures in Sterling and in 000s. The FCA will begin emailing data quality notifications to firms where submissions fail at least one test, identifying the specific data points involved. It is also exploring adding systems-level validation or field-specific pop-up guidance in RegData, and plans to publish further examples of observed data quality issues in a future IFPR Newsletter.
Financial Conduct Authority 2025-11-19
Financial Conduct Authority reports weaknesses in MIFIDPRU prudential reporting data quality and will notify firms of failed submissions
The Financial Conduct Authority (FCA) reviewed the data quality of prudential regulatory reporting by investment firms under the Investment Firms Prudential Regime (IFPR) and MIFIDPRU sourcebook, finding 60% passed all tests, 30% had non-systematic misreporting, and 10% failed due to recurring errors. No new reporting requirements are being introduced. Key improvement areas include inconsistencies in reporting and classification issues, with plans to notify firms of data quality failures and explore enhanced validation measures.