FCA speaks on evolving rules

Sarah Pritchard has spoken of the need for the FCA to adapt its rules as regulation changes – with particular reference to adopting a less prescriptive and more outcomes-focussed approach in the light of the Consumer Duty. She said the FCA knows there are some areas where reform is definitely needed, such as the advice market. The FCA and Treasury continue to work on the advice guidance boundary review, and what would work to give consumers protection and confidence to do more with their savings. She said the FCA is ready to help firms test their innovative ideas for services that fall short of advice – and said that these non-advisory services can only work if there is also a good advice market for those that want and need it.

Clear disclosure is key to consumer confidence, and the FCA accepts that current disclosure rules have not really led to consumers getting the right information at the right times or the right place in their customer journey and will be consulting on a new regime soon, with a plan to introduce new rules in the first half of 2025. Its work on PRIIPs has led the way on this.

She ended by saying the FCA is pleased with how many firms have embraced the Consumer Duty, and it is now focussing on looking at how firms are embedding the Duty’s requirements for consumer support and understanding – one reason for its ongoing consultation on what changes it might make to its retail conduct rules.