FCA’s Coronavirus (Covid-19) Financial Resilience Survey

Regulatory Updates | 05/06/20

Introduction

The FCA has announced, by way of a News Statement published on its website on 3 June 2020, its intention to ask around 13,000 firms to complete a survey to help the FCA to obtain a more accurate view of firms’ financial resilience as a result of coronavirus (Covid-19). The FCA will use the data provided, alongside existing data, to support its ongoing work. 

The FCA expects all firms approached to complete the short survey

The primary purpose of the survey is for the FCA to understand the effect Coronavirus (Covid-19) is having on firms’ financial resilience. This will help the FCA to further identify emerging risks of harm to consumers, the market and competition within it, to enable the regulator to better mitigate against those risks. This survey will be sent to approximately 13,000 solo regulated firms the FCA regulate across various sectors, exercising its formal powers under section 165 of the Financial Services & Markets Act (FSMA) 2000.

Affected Firms

We [the CCTA] are given to understand that currently, 15 [Fifteen]of the FCA’s Portfolios of firms are affected and will receive the Survey and all firms within each Portfolio will be included.  This approach is said to allow the FCA to assess the impact across particular markets. 

The Portfolios include:

  • High Cost Lenders
  • Mainstream Consumer Credit Lenders
  • Peer-to-Peer Lending Platforms
  • Advisers & Intermediaries
  • Credit Reference Agencies
  • Debt purchasers, debt collectors and debt administrators
  • E-Money Issuers
  • Payment Services Firms
  • SIPP Operators
  • Contracts for Differences (CFD) Providers
  • Crowdfunders
  • Custody Services
  • Personal and Commercial Lines Insurance Intermediaries
  • Wealth Management
  • Platforms   

The Survey

The Survey consists of 10questions and, subject to the nature of answers provided, some additional questions may be asked.

The questions focus on:

  • Liquidity/cash availability
  • Recent financial performance
  • Scale of business activity
  • Access to Government Schemes

The FCA has stated that the survey has been designed for ease of completion (even via mobile phone) and should take around an hour to finish.    

Firms, in the first instance, will receive an introductory email advising them that they will shortly receive the survey, followed by a second email providing a link to the actual survey questionnaire. The link will only be accessible to the email recipient and as such, if firms need another member of staff to complete it, they will need to contact the FCA’s Supervision Hub on 0300 500 0597.

All relevant FCA’s emails will confirm that the data provided will be treated on a confidential basis and will not be published. 

Timings

The Survey will be circulated by the FCA in two email batches and firms will be given 7 working days to complete it:

·         Batch 1 will be email circulated on 4 June (for response by 12 June)

·         Batch 2 will be email circulated on 8 June (for response by 16 June).

If any members have any questions when completing the survey, you should contact the FCA’s Supervision Hub on 0300 500 0597 in the first instance, or via email at firm.queries@fca.org.uk.