Wholesale financial businesses involved in retail markets will
find it easier to comply with the Consumer Duty, following
proposals from the Financial Conduct Authority (FCA).
The changes are part of the regulator's plans to give wholesale
firms the confidence to apply the Duty proportionately. Under the
proposals, firms will benefit from:
- Removing business for genuinely non-UK customers from the
Duty's scope where there is no clear UK link or reasonable
expectation of UK protection.
- Clearer boundaries around what is out of scope, so they can
focus on running their business rather than having to show that
the Duty does not apply.
- More clarity on firms' responsibilities when they work
together, including across distribution chains and in the design
of complex products.
Simon Walls, executive director of markets,
said:
The Consumer Duty is helping deliver good outcomes and build
confidence for retail consumers, but it was never intended to
become a Wholesale Duty, imposing on deals between sophisticated
parties. That's why we are refining its scope to provide greater
clarity to wholesale markets and keep the focus on the consumer
outcomes it was created to improve".
The FCA has today also published proposals to further simplify
its insurance rules, while maintaining appropriate levels of
consumer protection.
The FCA will continue to engage firms and other stakeholders to
support effective implementation of the Consumer Duty and ensure
it delivers good outcomes across markets.
Notes to editors
