The UK Financial Conduct Authority (FCA) is asking for input on whether, where and how it can refine its retail conduct rules.
The FCA particularly wants to address potential areas of complexity, duplication, confusion, or over-prescription, which create regulatory costs with limited or no consumer benefit. The regulator also wants to include appropriate flexibility in its rules to be responsive to future changes and innovation.
The regulator invites comments on issues including:
- which detailed rules or guidance could be simplified to rely on high-level rules, or have interactions with other rules which could be clarified
- how any steps to simplify FCA rules and guidance affect its statutory objectives
- the appropriate balance between high-level and more detailed rules
- the potential benefits and costs from simplifying its rules
The FCA is asking for comments by 31 October 2024.
The regulator is calling on industry to identify rules which could be removed or simplified if they overlap with the Consumer Duty.
The Consumer Duty sets a high standard of care that firms must give to their retail customers. Its outcomes-based approach allows firms scope to adapt and innovate in a way that helps consumers and is responsive to technological change and market developments.
