On 25 March 2025, the Financial Conduct Authority (FCA) published a feedback statement, FS25/2: Immediate areas for action and further plans for reviewing FCA requirements following introduction of the Consumer Duty.

Background

The FCA launched a call for input in July 2024, which sought to understand how it could simplify its requirements following the introduction of the outcomes-focused Consumer Duty. There were 172 responses to the call for input, from a wide range of stakeholders, and the FCA also held a series of meetings, roundtables and events in late 2024.

Proposals

The FCA explains that there was clear feedback to the call for input that now is not the time for wholesale changes to its rules, although the majority did encourage steps to amend or simplify the Handbook in discrete areas. The FCA plans to continue to engage with industry and others to get the balance right, without a widespread overhaul.

FS25/2 sets out “an ambitious programme of action” that the FCA plans to take to simplify its requirements of firms, covering commitments for immediate action and proposals for longer-term work. These include:

  • Reviewing the foundations: Addressing how the FCA regulates and the scope of its rules, considering how their apply to customers based outside the UK and reviewing some core definitions.
  • Future-proofing disclosure: Allowing more flexibility to tailor customer-facing communications in a way which promotes consumer understanding and allows for more modern customer journeys.
  • Reducing the administrative burden: Giving firms more flexibility in how they apply the FCA’s requirements so that the regime is more outcomes-focused, reducing unnecessary administrative burdens.
  • Streamlining requirements: Carrying out targeted work to remove or review outdated requirements, or areas of unnecessary complexity.

Timeline for immediate actions

In relation to its immediate action points, the FCA plans:

  • In May 2025, to consult on proposed mortgage changes as part of its mortgage rule review.
  • In June 2025, to publish a discussion paper on further proposed mortgage changes, including a discussion on consumer disclosure requirements within the mortgage sector.
  • Within the next year, to consult on the rules for advertising consumer credit, including proposals to remove unnecessary prescription, update outdated requirements, and improve alignment with the Consumer Duty.
  • By summer 2025, to publish a consultation paper and discussion questions on insurance changes.
  • Later in 2025, to consult on changes to the requirement for asset managers to report annually on their value assessments.
  • Later in 2025, to consult on updating certain requirements in the Client Assets sourcebook.
  • In 2025, to publish a guide for smaller firms.
  • By the end of April 2025, to withdraw historic communications.
  • Later in 2025, to consult on targeted clarifications of Handbook materials.
  • In Q3 2025, to improve accessibility of the FCA’s feedback tool as part of the Handbook website update.

Next steps

In addition to the immediate actions outlined above, the FCA plans to publish a further statement outlining its full programme of work in September 2025.