The Financial Conduct Authority (FCA) is planning to amend its Consumer Duty rules to “remove disproportionate burdens from wholesale firms” and give them confidence to “act proportionately”.
In a letter addressed to chancellor Rachel Reeves, FCA CEO Nikhil Rathi said the regulator has "listened carefully" to the feedback it has received, setting out a four-point action plan to address concerns around when and how the Duty applies during business activities. In doing so, Rathi said the FCA is "rebalancing risk" as part of its strategy, developing metrics that articulate the Government's "degree of tolerance for consumer harm", as well as potential incidents of significant consumer detriment. Shared risk appetite across government, parliament and the FCA "could help", Rathi...
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