With the Consumer Duty now fully in effect, The Financial Conduct Authority (FCA) have introduced a range of
proposals to simplify their rules, ease business burdens, and promote growth.
The proposals are looking to address and simplify the rules and guidance, addressing concerns about the length and complexity. Following a Call for Input in July 2024, which received 172 responses and included extensive stakeholder engagement, FS25/2 outlines immediate actions and long-term proposals to streamline requirements. Further details will be shared in September 2025.
The publication will be of interest to:
- Firms and industry bodies
- Consumers and consumer advocacy groups
- Policymakers and regulatory organizations
- Industry advisers and consultancies
- Experts, commentators, academics, and think tanks
The next steps outlined in
FS25/2 involve taking immediate action on the proposed measures using an accelerated consultation process, where there is clear support for change.
The FCA will review all Dear CEO and portfolio letters issued before their
2022-25 strategy, with the aim of withdrawing them, unless exceptions apply, while ensuring these documents remain publicly accessible.
In areas where feedback has been mixed, they will engage further with stakeholders to gather input and identify where more significant changes may be needed.
Following on from the proposal the FCA has outlined their plans to simplify regulations for consumer finance, investment, and mortgage firms by retiring over 100 pages of outdated guidance and withdrawing hundreds of supervisory publications. Review current disclosure rules to offer firms more flexibility in tailoring communications, particularly for online and digital transactions. Additionally, the rules for businesses serving overseas customers, such as examining whether UK insurance regulations should apply to non-UK clients. They also plan to consult on addressing outdated, conflicting, or unclear requirements within the Handbook.
Industry feedback has shown that now is not the time for major changes to the rules, with concerns about the speed and cost of regulatory changes. The FCA will continue engaging with industry stakeholders to ensure that any changes are proportionate, predictable, and allow firms to deliver the greatest benefits to consumers.
Additionally, the FCA plan to hold an in-person summit in summer 2025 to discuss these issues in more detail and will publish a comprehensive statement in September 2025 outlining their full programme of work.