On 9 December 2024, the Financial Conduct Authority (FCA) updated its perimeter report. The FCA’s perimeter sets out what it does and does not regulate, and the report describes specific issues around it and the action the FCA is taking in response.

Updates reflected in the latest version of the report include:

• A reference to the recent announcement that HM Treasury (HMT) plans to consult to remove the current provision for the certification regime from legislation and work with the FCA to replace it with a more proportionate regime. The FCA welcomes this announcement and flags it as an example of how the UK’s financial services legislation could be streamlined to work more effectively, which would help to further the growth and international competitiveness of the UK economy.

• A link to the FCA’s Policy Statement including final rules on the critical third parties regime.

• An update on HMT’s plans to regulate buy-now-pay-later products, including confirmation that once the Government has made the legislation (on which it consulted recently), the FCA intends to consult on rules to supplement the legislative requirements.

• Information on investment trust cost disclosure, including the FCA’s plan to launch a consultation on the proposed new consumer composite investment framework before the end of 2024 (with a view to publishing the final rules in H1 2025).

• The FCA’s new designation (following the publication of the National Payments Vision in November 2024) as the lead regulator for open banking and open finance.

• Confirmation that the FCA intends to continue working closely with the Government on next steps for bringing ESG ratings providers into the regulatory perimeter, including a planned FCA consultation on proposals for the future regulatory regime in 2025 (once the legislation is finalised by the Government).