On 10 December 2024, the Financial Conduct Authority (FCA) published a letter from its chief executive Nikhil Rathi to the chair of the Treasury Committee, Dame Meg Hillier MP, regarding the latest version of the FCA’s perimeter report which was published on 9 December 2024.

In the letter, dated 6 December, the FCA explains that the latest version of the perimeter report (which it shared along with the letter) is an important part of its accountability to Parliament and represents an opportunity to discuss with both HM Treasury and the Committee some of the current strategic gaps in the overall UK legislative framework.

In particular, the FCA highlights the following areas within the report that it says reflect longstanding perimeter concerns that it and its stakeholders are keen to progress further:

  • The question of whether investment consultants should be within the FCA’s perimeter – the FCA has been discussing this since the Liability Driven Investment crisis and is keen to see a resolution on this soon.
  • The long-standing perimeter issue of SME lending, which was highlighted recently as a result of the Federation of Small Business’ super-complaint against the FCA. The FCA notes that it is keen to work with the Government on reforming the Consumer Credit Act to ensure this matter is clarified and resolved.
  • Appointed representatives (ARs) – the FCA warns that it continues to see risks of harm where principals do not adequately oversee the activities of their ARs and says it is ready to engage further with HM Treasury on appropriate next steps.
  • Sports and non-financial spread-bettering – a recent Complaints Commissioner report reiterated the importance of the FCA seeking clarity from Government on where the perimeter should lie in this area. Mr Rathi notes that the FCA considers financial spread-betting to sit within its perimeter, but that an alternative framework for sports spread-betting could be more tailored to the risks of sports gambling.

The letter notes that some parts of the perimeter report also set out how wider action can further support the FCA to advance international competitiveness and growth within the perimeter, such as the potential for the new Smart Data powers in the Data (Use and Access) Bill to help in encouraging innovative firms to scale up and accelerate thinking on use cases for open finance.