On 17 January 2025, the FCA published its response to a letter from the Prime Minister which was sent along with the Chancellor’s recommendations on growth.

The letter describes certain planned reforms under three headings: (i) unlocking capital investment and liquidity (ii) accelerating digital innovation to enhance productivity and (iii) reducing the regulatory burden. In relation to the latter the reforms include:

• Remove the need for a Consumer Duty Board Champion now the Duty is in effect.
• Ensure future consultations on consumer protection ask if the Consumer Duty is sufficient rather than new rules.
• Begin simplifying responsible lending and advice rules for mortgages, supporting home ownership and opening a discussion on the balance between access to lending and levels of defaults.
• Consult on removing maturing interest-only mortgage and other outdated guidance.
• Work with Government to remove overlapping standards, e.g. the Mortgage Charter.
• Review the proportionality of reporting requirements and remove redundant returns, initially expected to benefit 16,000 firms.