The FCA’s recent feedback statement (FS25/2) outlines an ambitious plan to simplify regulatory requirements following the introduction of the Consumer Duty. The statement highlights immediate actions and longer-term proposals aimed at reducing complexity for firms, while maintaining strong consumer protections.
The FCA aim to do this by:
- Streamlining Regulations: The FCA plans to retire over 100 pages of outdated guidance and withdraw hundreds of supervisory publications. Its first consultation, CP25/8, is already underway, proposing the decommissioning of various regulatory returns including FSA039, RMA-F and Form G. As industry practices evolve, the FCA as indicated it will continue to evaluate whether current rules remain appropriate for the way firms conduct business.
- Simplifying Communications: Efforts will be made to improve clarity in consumer finance, investment and mortgage regulations, especially where unnecessary complexity exists. This includes ensuring consistency amongst FCA Handbook definitions particularly in relation to retail customers and small and medium-sized enterprises (SMEs). The FCA also aims to provide greater clarity around product governance rules and how the Consumer Duty applies throughout supply chains.
- Future-Proofing Disclosure: The FCA intends to allow firms more flexibility to tailor customer-facing communications in ways that promote genuine understanding and enable more modern customer journeys. This shift aims to replace rigid, outdated templates with adaptive messaging that better meets the needs of consumers.
- Reducing Administrative Burdens: To foster a more outcomes-focused regime, the FCA seeks to give firms greater flexibility in how they implement regulatory requirements. A consultation planned for May 2025 will explore ways to simplify the remortgaging process, helping consumers reduce their borrowing costs through term reductions and engage with firms without needing to enter a fully regulated advice process.
- Industry Engagement: The FCA plans to host an in-person summit in summer 2025 to gather feedback on proposed changes, identify areas requiring more substantial reform, and facilitate stakeholder discussion. UK authorities, firms, trade bodies and consumer organisations will all be invited to contribute.
Next Steps for the FCA
The FCA is committed to acting quickly on measures outlined in FS25/2 where there is a clear case for change. It will engage with stakeholders to ensure that reforms do not unintentionally increase regulatory burdens.
You may be concerned about the volume of communications expected from these changes. Indeed, staying abreast of constant updates from regulators is one of the industry’s most pressing challenges. To reduce this burden, the FCA plans to review and potentially withdraw all Dear CEO and portfolio letters issued prior to its 2022–25 strategy, subject to exceptions.
A further progress update statement is expected in September 2025, which will detail the work undertaken and the roadmap ahead.
How Can Complyport Help?
Complyport can help your firm understand the FCA’s expectations, as well as the impact of these expectations to your firm. We can support your firm by providing:
- Regulatory Guidance: Expert advice to help your firm interpret FCA requirements and understand their implications.
- Ongoing Support: Assistance in maintaining compliance as regulations continue to evolve.
- Compliance Documentation: Reviews and updates of internal policies and procedures, including drafting of new policies following the Consumer Duty and future changes.
- Training: Tailored training sessions on compliance best practices and implementation strategies.
- Authorisation Applications: Support for firms applying for FCA authorisation, including preparation and submission.
Book a meeting with one of our Subject Matter Experts to ensure you remain compliant and well-positioned in the evolving UK regulatory landscape.
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