In an action plan released today, we have outlined proposals to review our expectations for mortgages and lending, and to explore how we can simplify communications about savings accounts. We will also review parts of our credit advertising rules, such as lengthy terms and conditions.
The proposals[2] are part of our work to streamline our rules, reduce burdens on businesses, and improve outcomes for consumers following the introduction of the Consumer Duty.
There was clear feedback to our call for input that now is not the time for wholesale changes to our rules. We will continue to engage with industry and others to get the balance right, without a widespread overhaul.
Our plans include:
- Making it easier to navigate regulations for consumer finance, investment and mortgages firms by planning to retire more than 100 pages of outdated guidance.
- Withdrawing hundreds of supervisory publications.
- Reviewing current prescriptive disclosure rules to give firms more flexibility to tailor communications to customers' needs and preferences, like online and digital transactions.
- Revisiting rules for businesses with customers outside the UK, for example looking at whether insurance firms need to apply UK rules for their overseas customers.
Sarah Pritchard, executive director of supervision, policy, competition and international at the FCA said: 'Now the Consumer Duty is in full force we’re making changes quickly where stakeholders want us to, to cut unnecessary costs, support growth, and ultimately help consumers get better outcomes.
'These proposals are part of our long-term efforts to future-proof our rules, reduce burdens for financial firms and will help the ambitious government targets to cut the cost of regulation.'
Further information
- Read Consumer Duty rule review next steps (FS25/2)[2].
- We committed to streamlining our Handbook following industry input in our letter to the Prime Minister on supporting growth[3].
- The work announced today sits alongside plans to make our Handbook more user-friendly, and machine-readable[4].
- Supervisory publications to be withdrawn include Dear CEO letters, Portfolio letters, and Multi-firm and Thematic reviews that pre-date the FCA’s 2022-2025 strategy. Documents will still be publicly accessible.