'Will this return us to one-size-fits-all?': Industry divided over Reeves' Consumer Duty wholesale review

‘Adversely affect the Duty’s objectives’

Chancellor Rachel Reeves’ directive for the Financial Conduct Authority (FCA) to review the impact of the Consumer Duty on wholesale firms has been welcomed but has also raised concerns that revisiting the Duty’s scope could dilute consumer protections and risk a return to a “one-size-fits-all” approach the regulation was designed to move away from.

The chancellor's 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. In her Mansion House speech, Reeves asked the FCA to 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. It is expected to test its proposals with market participants, consumer groups, and industry bodies before deliverin...