The Financial Conduct Authority (FCA) has announced a comprehensive review of financial services rules, aiming to reduce regulatory burdens on firms and support economic growth.

This move comes one year after the introduction of the Consumer Duty, which set higher standards for consumer protection in the financial sector.

The regulator is calling on the industry to identify rules that could be removed or simplified if they overlap with the Consumer Duty. This initiative is part of the FCA's effort to fulfil its secondary objective of supporting UK competitiveness and economic growth over the medium to long term.

Nikhil Rathi, chief executive officer of the FCA, said: "We now want to seize the opportunity of the Duty and the move to a clear outcomes-based approach to streamline our rulebook, lowering costs for businesses and supporting the competitiveness and growth of the economy."

In addition to the broad rule review, the FCA is considering simplifying regulations in the UK's £15.5 billion commercial insurance sector. The regulator is seeking input on how customers are categorised, which could potentially reduce the time needed to onboard new clients and allow for more customised products.

The FCA has already made significant improvements to its authorisation process, with 98 per cent of cases now assessed within statutory deadlines, up from 78.9 per cent in the first quarter of 2022/23. The regulator has also completed a major reform of listing rules and continues to support innovation in financial markets through initiatives like the permanent Digital Sandbox.

From 1 August, the FCA will consult a new independent panel of experts when preparing cost benefit analyses for proposed regulations with an estimated net annual direct cost to industry of £10 million per year and above.

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