The Smaller Business Practitioner Panel (SBPP) has published its response to the FCA’s consultation on simplifying the financial promotions rules for consumer credit firms.
The panel broadly agreed with the FCA’s proposals, but practicality concerns for smaller firms remain in the following areas:
- Increased compliance costs;
- FOS interpretation of the rules – removal of rules results in a gap for FOS and CMCs to challenge other firms decisions; and
- Greater reliance on principles over clear guidance risks increasing of poor behaviour.
Overall, the SBPP urges the FCA to mitigate these risks through additional non-Handbook guidance and welcomes the FCA committing to specific, measurable targets of its monitoring of outcomes from these changes.