The Financial Conduct Authority (FCA) is considering regulatory changes to assist individuals in obtaining clearer information from financial firms, thus helping them to easily find and compare products. A component of the FCA’s upcoming five-year strategy, set to be announced on Tuesday, involves simplifying communications regarding savings accounts and reviewing certain credit advertising rules, including those concerning lengthy terms and conditions. Additionally, the FCA is evaluating its criteria for mortgage lending as part of a broader initiative to streamline rules, alleviate business burdens, and enhance outcomes for consumers.
On Monday, Ashley Alder, the FCA’s chair, expressed to the Financial Times the organization’s desire to encourage retail investors to take more risks with their savings. This work aligns with the agency’s previously introduced Consumer Duty, which mandates financial firms to prioritize their customers’ needs in communications and product design.
Industry feedback has indicated that the current time is not suitable for widespread regulatory changes, according to the FCA, which says it will continue to collaborate with affected parties to find an appropriate balance. Future plans include revising disclosure rules to increase firms’ flexibility in tailoring communications to customer preferences, including those for online and digital transactions. Outdated guidance for firms is also set to be retire.
Chancellor Rachel Reeves has directed regulators to contribute to economic growth by improving their efficiency, which aligns with these FCA initiatives. Sarah Pritchard, the FCA’s executive director of competition, consumers, and international, highlighted that these proposals are part of long-term efforts to future-proof rules, reduce compliance burdens, and support the government’s ambitious targets to decrease the cost of regulation.
Separately, the FCA announced plans to absorb the now defunct Payment Systems Regulator (PSR) and its 160 staff, following the government’s decision to abolish PSR as part of its drive for efficiency. This move aims to further the objective of fostering economic growth. Coincidentally, the FCA and PSR share premises in Stratford, East London, with PSR personnel contracted under the FCA.
Source: https://www.theguardian.com/business/2025/mar/25/city-watchdog-ponders-rule-changes-to-simplify-comparisons-of-financial-products
