We're asking for views on whether, where and how we can refine our retail conduct rules, while ensuring we continue to support and protect consumers.
Why we're asking for input
We want to see where we can simplify our retail conduct rules and guidance. We particularly want 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.
While we are primarily focused on our retail conduct rules and guidance, we also invite views on our wider rules and guidance.
We invite comments on issues including:
- which detailed rules or guidance could be simplified to rely on high-level rules, or have interactions with other rules which could be clarified
- how any steps to simplify our rules and guidance affect our statutory objectives
- the appropriate balance between high-level and more detailed rules
- the potential benefits and costs from simplifying our rules
We want to understand how different types of firms may be affected by changes to our approach.
We’ve committed to a post-implementation review of the Consumer Duty, so we’re not seeking responses to this Call for Input with suggestions for changes to the Duty.
Who should read this Call for Input
This paper will primarily be of interest to:
- firms and industry bodies
- consumers and groups representing consumer interests
- policy makers and other regulatory bodies
We also invite views from:
- industry advisers and consultancies
- experts and commentators
- academics and think tanks
Next steps
We are asking for comments by 31 October 2024.
You can send them to us using our online response form.
By writing to: Consumer Policy and Outcomes, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN
By emailing: [email protected]
We will carry out a programme of engagement with interested parties over summer and autumn 2024.
Background
The Consumer Duty sets a high standard of care that firms must give to their retail customers. Its outcomes-based approach allows firms scope to adapt and innovate in a way that helps consumers and is responsive to technological change and market developments. The introduction of the Duty provides us with an opportunity to consider whether we could help firms and support innovation by removing detailed and prescriptive requirements that cover similar issues, and where similar customer outcomes could be achieved with greater flexibility.
Since 29 August 2023, we’ve had a new secondary objective to facilitate the international competitiveness of the UK economy (including the financial services sector) and its growth in the medium to long term, subject to aligning with international standards.
We want our approach to the Duty to support these aims by allowing for more effective competition and innovation. Consumers should have access to products and services suitable for their needs, and which provide fair value, appropriate communications and consumer support, while also improving trust in, and the reputation of, UK markets.
This Call for Input will help to ensure our regulation remains effective, streamlined and comprehensible, maximising the Duty’s benefits.