Chancellor Rachel Reeves has directed the Financial Conduct Authority (FCA) to report by the end of September on how it will address concerns over the impact of Consumer Duty on wholesale financial firms.
The instruction forms part of a broader regulatory overhaul unveiled by the government on Tuesday (15 July) through its Financial Services Growth and Competitiveness Strategy consultation. According to the HM Treasury consultation paper, Reeves has asked the FCA to evidence how it will tackle concerns around how the Duty applies to wholesale distribution chains that impact retail consumers. Further, the FCA was asked to provide "certainty" around the classification of professional clients. The consultation paper stated that responses to a call for evidence showed a "consistent feeling...
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