’We now want to seize the opportunity of the duty and the move to a clear outcomes-based approach to streamline our rulebook,’ says chief executive
The rules governing financial services could be streamlined to reduce burdens on businesses following a review launched by the FCA.
The move comes after the introduction of the Consumer Duty regulations, which were launched on 31 July 2024.
The review will see the regulator call on the industry to identify rules which could be removed or simplified if they overlap with the duty.
It said that reducing complexity of the FCA’s rulebook could lower costs for firms, encourage innovation and help support the risk appetite needed to help with growth.
Launching the review, Nikhil Rathi, chief executive of the FCA said: ”We are firmly committed to playing our part in supporting economic growth.
”The Consumer Duty marked a major shift for firms and consumers by setting higher and clearer standards of consumer protection and requiring firms to put their customers’ needs first.
‘We now want to seize the opportunity of the duty and the move to a clear outcomes-based approach to streamline our rulebook, lowering costs for businesses and supporting the competitiveness and growth of the economy.”
Review
The Consumer Duty rules set out requirements for firms to follow to deliver good outcomes for their customers.
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The regulator said that it wanted to ”address potential areas of complexity, duplication, confusion, or over-prescription, which create regulatory costs with limited or no consumer benefit”.
”We also want to include appropriate flexibility in our rules to be responsive to future changes and innovation,” it added.
Alongside the broad rule review announced , the FCA is also considering simplifying rules in the commercial insurance sector.
“The FCA is inviting views on whether changing how customers are categorised could significantly reduce the time needed to take on new customers, or renew their contracts, and allow products to be custom made,” it explained.
“This would reduce regulatory costs and may increase the competitiveness of the commercial insurance market.”
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