The term ‘co-manufacturing’ is expected to be removed from Financial Conduct Authority rules as the regulator seeks to clarify its expectations on firms.
In its latest consultation, Consumer Duty – scope and proportionality, released today (29 June) and open until 18 September, the FCA said its revised rules would focus on what happens when more than one firm contributes to the manufacture of a product or service, such as model portfolios. It explained that where there is more than one manufacturer in this way, firms would be either "a principal or secondary manufacturer". The consultation paper said: "Firms with substantive control over the design or operation of the product or service would be classed as the principal manufacturer ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
