FSCA shifts direction on OMNI-CBR with new risk-based supervisory approach

By Compli-Serve

The Financial Sector Conduct Authority (FSCA) has issued Communication 12 of 2025, signalling a major strategic pivot in how it will collect and use conduct-related data from financial institutions going forward. The previously proposed OMNI-Conduct of Business Return (OMNI-CBR), initially designed as a comprehensive, cross-sectoral conduct reporting framework, will no longer be rolled out in its original form.

Instead, the FSCA is adopting a phased and technology-enabled approach anchored by its newly launched Integrated Regulatory Solution (IRS) – a supervisory technology (SupTech) platform that will form the backbone of a modernised, digital regulatory model.

At the core of this transformation is the introduction of an OMNI-Risk Return, which will feed data into a new automated Risk Model. This model is designed to generate standardised risk scores across all licensed institutions, enabling the FSCA to take a more consistent and comparative approach to risk-based supervision. A second, longer-term component will involve the phased identification and collection of sector-specific data beyond the OMNI-Risk Return.

The FSCA has acknowledged the concerns raised by industry participants regarding the complexity and scale of the initial OMNI-CBR templates. With the IRS in place, the regulator now aims to reduce reporting burdens while improving data quality, visibility, and supervisory coordination. The move aligns with the FSCA’s broader 2025–2028 Regulatory Strategy, which prioritises agility, modernisation, and the implementation of the upcoming Conduct of Financial Institutions (COFI) Bill.

A pilot of the IRS platform is expected in Q3 2025, with full implementation anticipated in 2026. In the interim, the FSCA has confirmed that no internal development work on the previous OMNI-CBR format is expected from financial institutions. Insurers currently submitting quarterly conduct returns must continue to do so via the existing FSCA web facility until further notice.

This announcement reflects a wider trend across global regulatory bodies: embracing technology and data-driven supervision while balancing regulatory burden. The FSCA’s recalibrated approach presents a timely opportunity for financial institutions to reset their reporting strategies in alignment with a smarter, more integrated compliance future.