The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 22 of 2021, which provides an update on the development of the cross-sectoral Conduct of Business Return (Omni-CBR) and confirmation of the FSCA’s intention to undertake a consultative process on the content and implementation of such, during 2022.
The Omni-CBR aims to facilitate streamlined cross-sectional reporting and to expand on the types of conduct indicators to be reported in future by various financial institutions, which includes, among others, Financial Services Providers (FSPs) and banks.
As highlighted in the FSCA’s Regulatory Strategy 2021-2025, the Omni-CBR will form an important part of its off-site supervisory toolkit and reflects the FSCA’s increasing focus on embedding an evidence-based and data-driven approach to regulation and supervision. Furthermore, this approach will assist the FSCA to be more proactive and pre-emptive in promoting the embedment of good conduct and fair customer outcomes, as well as the improvement in responsiveness to potential conduct risks, consistently across the financial sector.
The first version of the Omni-CBR was planned for industry consultation by the end of 2021, however this has been delayed until early 2022 to ensure alignment with several key internal and external developments and to facilitate a more significant engagement process. The FSCA is also conscious of the potential operational impact of the implementation of the Omni-CBR may have on financial institutions and the FSCA, as well as the implications of ongoing harmonisation efforts under the current sector-based regulatory framework and alignment with future expectations under the planned COFI Bill.
The FSCA is currently working on an Omni-CBR Roadmap (the Roadmap) that will form the basis for extensive industry engagement commencing in the first quarter of 2022. The roadmap will comprise of the following:
- Draft Omni-CBR template containing the list of conduct reporting indicators relevant to different financial institutions and financial products;
- Explanatory document providing guidance on the completion of the Omni-CBR;
- Background on the extensive local and international foundational work that helped inform the content and approach of the Omni-CBR;
- Proposed implementation milestones to facilitate an incremental phasing in of harmonised regulatory reporting through the Omni-CBR; and
- Details of various general and targeted industry consultation initiatives to solicit feedback on the content, operational impact and implementation of the Omni-CBR.
The FSCA confirmed that further details regarding the Roadmap and the engagement process will be communicated during the first quarter of 2022.
Click to read the article on the FSCA’s Regulatory Strategy.