UK’s FCA Looks For Industry Opinions On Streamlining Financial Rules

The Financial Conduct Authority (FCA) has started a review to improve its rules that govern financial services. The authority aims to reduce the regulatory burdens on businesses. It took this step after unveiling the Consumer Duty. This rule ensures businesses provide better outcomes for clients when they purchase financial products and services.

The FCA Aims To Simplify Rules That Conflict With The Consumer Duty Regulation

The FCA (FCA) is asking the financial industry to find rules that can be removed or made simpler if they clash with the Duty. Making the FCA’s rulebook less complicated could reduce companies’ costs. It will also promote new ideas and help support the willingness to take risks needed for growth. This will eventually improve international competitiveness and the economy over time.

While launching the review, the FCA’s Chief Executive, Nikhil Rathi, said the regulator is strongly dedicated to helping economic growth. The Consumer Duty brought a big change for customers by setting clearer rules for making companies prioritize their customers’ needs.

Nikhil added that the FCA wants to take advantage of the Duty and the shift to a clear outcomes-based approach to simplify its rulebook. Along with the wide rule review announced today, the authority is considering simplifying rules in the commercial insurance sector. This sector is valued at over £15.5 billion in the UK.

The Regulator Wants To Speed Up Onboarding Processes

The FCA noted that changing how customers are classified could greatly cut down the time needed to bring in new customers. This change is expected to lower regulatory costs and boost the competitiveness within the commercial insurance market.

Both reviews were launched on the same day the regulator released its first report about how it has worked on its secondary goal. This goal is to help improve competitiveness in the UK over the next few years.

The FCA says it has made its authorization process better. Now, 98% of cases are reviewed within the required time, compared to 78.9% in the first quarter of last year.

Major financial firms that want to operate in the UK can get help from the FCA before they apply. The regulator has also finished the biggest update to the listing rules in years.

The FCA keeps backing new ideas in financial markets. This involves setting up a permanent Digital Sandbox, a testing space that assists firms in the early stages of developing their products.