What happens if you fail to update the new FCA register?

Under the policy statement  - part 1.22 

“We will include a warning in the Directory to highlight to users where information may be out of date. This would apply to firms who have not made any changes to their data within 12 months and who did not confirm whether this information is still up to date. Users will also see this warning where we have received error reports and firms have not responded to our attempts to contact them”

However, the new requirements are only guidance in the rule book.  There is a fear that the many register errors will compound in the new director.    This is a big risk for the FCA, because the SMR directory will be the primary source for information, and is updated only by FCA, whereas this public directory is maintained by firms submitting data by “notification” - as opposed to by application for authorisation.

The current FS register is mandatory and controlled by FCA.   The new register has a second tier status and its success depends on how accurate the data submissions are, and, of course, whether firms report as they are due to...particularly given 16.26.8 G (1)  “The FCA will not verify the information about Directory persons which is reported by a firm.”  That’s right.  The notification is governed by guidance, not rules.  And here is the guidance:

16.26.2 G (1) This section requires an SMCR firm to report information about its Directory persons to the FCA.
However later on, and contradictory, it does appear to be a rule...
See 16.26.6 R (1) An SMCR firm must submit a duly completed and accurate report to the FCA for each Directory person in accordance with the provisions of this section
So the FCA will enforce it as a rule, and failure to report is dealt with under 16.26.22 G –a serious offence.  
But the big omission is that insurance advisers will still NOT be on the FCA register, nor on the directory, unlike the mortgage brokers.