FCA to review rules on financial services regulations

If you are currently investment planning in Cheshire, it may be helpful to know that the Financial Conduct Authority (FCA) is to undertake a review of its rules with regard to the governance of financial services.

It is envisaged that the move will boost innovation and economic growth and cut costs, while softening the regulatory burden on UK business.

It follows the arrival of the Consumer Duty on July 31 last year, designed to establish more transparent standards of consumer protection across financial services, and is intended to prioritise the needs of customers. The FCA is also looking at simplifying rules in the UK commercial insurance sector, a lucrative market estimated to be worth over £15.5 billion.

The regulator is currently consulting with the financial services industry to gauge opinions on whether market competitiveness can be increased and regulatory costs reduced, by reclassifying customers and streamlining the procedural onboarding of new clients or contract renewals.

The FCA is also offering pre-application guidance to foreign financial entities looking to operate in the UK, by implementing notable reforms to the listing rules.

The latest review comes as the FCA publishes its first report on its strategy to support UK competitiveness and medium to longer term economic growth. It is hoped that simplified rules will reduce firms’ expenses and incentivise an appetite for higher risk, to drive growth.

The FCA also confirmed that this summer, it will be referring its findings to a separate panel of independent experts for the assessment of cost benefit analyses.

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