Regulatory return
Also called supervisory return, regulatory filing
A regulatory return is a standard report that a regulated firm submits to its supervisor at set intervals. It covers data such as capital, liquidity, large exposures, complaints or client money. Regulators define the templates, frequency and deadlines, and use the returns to monitor firms and spot risks across the market.
How it works
Each firm keeps a reporting schedule listing the returns it must file, their frequency and deadlines. Finance, risk and compliance teams extract data from source systems, map it to the template, run validation rules and obtain sign-off from an accountable senior manager. Submissions go through regulator portals, such as the FCA's RegData, often in XBRL or other structured formats.
Returns are the main route by which supervisors see inside a firm between visits. Late, missing or inaccurate returns can lead to fines, skilled person reviews and tighter supervision. Because figures often come from many systems, weak data lineage and manual spreadsheets are a frequent source of errors and resubmissions.
The rules
Requires banks to report own funds, capital requirements, large exposures, leverage and liquidity to supervisors using uniform templates.
EU credit institutions and certain investment firmsRequires insured depository institutions to file quarterly reports of condition and income with their federal regulator.
US insured banks and savings associationsCommon questions
What is the difference between a regulatory return and regulatory reporting?
Regulatory reporting is the wider activity of sending data to regulators. A regulatory return is one defined report within it, with its own template, frequency and deadline. A single bank may file dozens of different returns.
What happens if a return is late or wrong?
Regulators can impose late filing fees or financial penalties, require resubmission and increase supervisory scrutiny. Repeated errors can lead to a skilled person review of reporting controls. Senior managers responsible for the return can also be held accountable.
Who signs off a regulatory return?
Firms usually assign each return to an accountable senior manager, often the chief financial officer for prudential returns. Sign-off follows review of validation results and reconciliations. For PRA-regulated firms under the UK Senior Managers regime, the integrity of financial information and regulatory reporting is a prescribed responsibility.
What formats are regulatory returns filed in?
Formats vary by regulator and return. Many prudential returns in the EU and UK use XBRL taxonomies. Others are filed through web forms or data files on regulator portals. Supervisors are moving towards more granular and machine-readable formats.
Our coverage
News and analysis on regulatory reporting from RegTech Post.
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