The UK’s Financial Conduct Authority (FCA) is asking for input on whether, where and how it can improve retail conduct rules.
The FCA is particularly keen to address potential areas of complexity, overlap, confusion or over-prescription, which create regulatory costs with little or no benefit to consumers. The regulator also wants to include appropriate flexibility in its rules to respond to future changes and innovations.
The regulator invites comments on topics such as:
- which detailed rules or guidelines could be simplified to be based on high-level rules or have interactions with other rules that could be clarified
- how any steps to simplify the FCA’s rules and guidance affect its statutory objectives
- the right balance between high level and more detailed rules
- the potential benefits and costs of simplifying its rules
The FCA is seeking comments until 31 October 2024.
The regulator is calling on industry to identify rules that could be scrapped or simplified if they overlap with the Consumer Duty.
Consumer Duty sets out a high standard of care that businesses must provide to their retail customers. Its results-based approach allows businesses to adapt and innovate in a way that helps consumers and responds to technological changes and market developments.