The Financial Conduct Authority (FCA) has launched a consultation on 5 December 2025 proposing to reduce the administrative fee for overdue regulatory returns from £250 to £100. This measure is intended to make late fees fairer and less burdensome, particularly for smaller payment and e-money firms with limited resources. The proposal forms part of the FCA’s broader effort to ensure proportional supervision and lower the administrative cost of compliance for firms across the sector. [Source: FCA]
The FCA notes that over 80% of firms using the My FCA platform are already submitting their reports on time. In addition to the reduced late fee, the consultation outlines plans for clearer guidance and improved notification systems to help firms meet their regulatory obligations more effectively. There is also a proposal to eliminate three unnecessary data collection requirements for insurance firms, further aiming to streamline the process.
| Key Proposal | Impact |
|---|---|
| Late fee reduction (£250 → £100) | Lower costs for small firms |
| Improved guidance & notifications | Increased compliance rates |
| Removal of certain data collections | Simplified reporting for insurers |
The consultation remains open until 6 January 2026, after which the FCA will consider feedback before finalising its approach. Stakeholders in the payment and e-money sectors are encouraged to review the full proposals and submit their comments.
