The FCA proposes moving away from the PRIIPs KID to a more flexible, technologically neutral regime, which allows firms to innovate and prioritise good customer outcomes.
By Rob Moulton, Nicola Higgs, Becky Critchley, Sidhartha Lal, and Charlotte Collins
On 19 December 2024, the FCA published a consultation on its proposed rules for the new Consumer Composite Investments (CCI) regime (CP24/30). As part of the Edinburgh Reforms, the UK government committed to repealing the Packaged
In this publication and podcast series, we explore some of the core focus areas for UK-regulated financial services firms in the year ahead.
In 2024, we saw disruption to the regulatory reform agenda as the unexpected timing of the general election impacted work and publication schedules. Now that the reform agenda is back on track and aligned to the new government’s plans for growth, we are likely to see improved progress on existing reforms as well as fresh initiatives in the pursuit of growth during 2025.
There is doubtless a strong focus on retail markets under the new government, but the UK’s competitiveness as a place to do business remains vital as improvements to the UK’s wholesale markets continue. ESG and AI continue to dominate across the sector as rapidly evolving areas that profoundly impact the regulatory landscape.
The latest guidance from the FCA focuses on Consumer Duty board reports and how firms handle complaints and root cause analysis.
By Becky Critchley and Charlotte Collins
On 11 December 2024, the FCA published two pieces of feedback on the Consumer Duty, setting out good practices and areas for improvement in relation to Consumer Duty board reports and complaints and root cause analysis. These publications have been compiled to share the FCA’s insights on how different firms have started to embed the Consumer Duty across the financial services industry. The FCA aims to assist firms in meeting their Consumer Duty obligations by conducting a range of post-implementation work, as outlined in its Consumer Duty workplan.
Firms will find it particularly helpful to receive guidance on the FCA’s expectations regarding board reports. Previously, firms did not receive a prescribed template and found compiling their first reports challenging, both in terms of form and content. Firms will be keen to understand how they can improve their next board reports and meet FCA expectations.
The FCA is approaching its design of the world’s first regulated private/public crossover market with a “private plus” rather than a “public minus” mindset.
By Mark Austin, Rob Moulton, James Inness, Anna Ngo, Frederick Gardner, and Johannes Poon
On 17 December 2024, the FCA launched a consultation on its proposed regulatory framework for the Private Intermittent Securities and Capital Exchange System (PISCES) (CP24/29). This consultation follows the publication of HM Treasury’s draft statutory
When the Edinburgh Reforms were announced on 9 December 2022, they were billed as an ambitious set of reforms. Two years on, we assess which of the measures have been completed, which remain outstanding, and whether they have delivered on the agenda set out.
We also reflect on the recent Mansion House announcements, which have reset the future of regulatory reform.
The regulator has provided an update on the actions taken since its cash savings market review.
By Nicola Higgs, Becky Critchley, and Charlotte Collins
On 18 September 2024, the FCA provided an update on its work in the cash savings market. Following the FCA’s 2023 cash savings market review in light of concerns that higher interest rates were not being passed on effectively to savers, the regulator has conducted further work, including an in-depth analysis of the profits made on savings accounts and their contribution to overall firm profitability. The FCA has also worked with the largest firms regarding how they are providing fair value to easy access savings customers.
The latest guidance from the regulator focuses on the price and value outcome.
By Nicola Higgs, Becky Critchley, and Charlotte Collins
On 18 September 2024, the FCA published further feedback on the Consumer Duty, setting out good and poor practices in relation to the price and value outcome. For many firms, this is the most challenging of the four outcomes, and so it is helpful that the FCA is sharing insights which firms can use to improve their implementation of the Duty. Analysing the value different customers are deriving from a particular product, and ensuring that certain groups of customers are not receiving poor value, is a tricky exercise for firms, particularly those with fewer resources. Helpfully, the FCA acknowledges in its feedback that it does not expect smaller firms to apply the same resources to assessing fair value as larger firms, providing clarifications as to what might be a proportionate approach for a smaller firm to take.
The deadline for implementing the Duty for closed products and services is fast approaching, however firms’ work on the Duty is far from over as they must successfully pivot to addressing the Duty as part of their day-to-day operations.
By Nicola Higgs, Becky Critchley, and Charlotte Collins
31 July 2024 will mark one year since the Consumer Duty came into force for new and open products and services, and the deadline for implementing the Duty for closed products
FCA finds firms have been working hard to embed the Duty, but there remains room for improvement.
By Becky Critchley and Charlotte Collins
On 20 February 2024, the FCA published more information on the Consumer Duty, including a publication highlighting good practices and areas for improvement. The FCA also used a related speech to remind firms of the 31 July 2024 deadline for applying the Duty to closed products and services, and for producing the first annual board report assessing
This annual publication explores some of the core focus areas for UK-regulated financial services firms in the year ahead. 2023 saw significant progress on the regulatory reform agenda, and many measures consulted on or reviewed as part of the Edinburgh Reforms will be finalised and/or implemented in the course of 2024.
We also saw the passing of the Financial Services and Markets Act 2023, many provisions of which have already come into effect and have made important changes to the