Laura WilesHM Treasury and the FCA have held their fourth annual meeting on issues relating to the regulatory perimeter. The meeting noted the government’s strong commitment to the FCA’s secondary competitiveness and growth objective, and the parties agreed that work relating to the perimeter should be considered in this context.
The FCA raised the following areas for consideration:
- Non-financial spread betting
- The FCA clarified that spread betting products not based on financial indexes, such as sports or political performance, are not within the scope of its perimeter, in spite of some calls for the opposite.
- HM Treasury agreed that the government and regulators should collaborate to ensure consumers understand the boundaries of the regulatory perimeter.
- Consumer Credit Act – HM Treasury confirmed that it will shortly be consulting on reforms to the CCA.
- Investment consultants – HM Treasury confirmed that it will shortly be publishing a response to the Pensions Investment Review consultation.
- Appointed representatives
- The FCA noted that poor quality oversight by some principals can be a source of consumer harm, and that it would welcome progress on whether wider legislative changes are needed following HM Treasury’s call for evidence.
- HM Treasury did not confirm any next steps, but recognised the need to address potential harms while also ensuring proportionate regulatory obligations for firms.