Christopher Woolard, director of strategy and competition at the FCA, said: “We would like to see firms changing the way they interact with their customers.”
“Today’s announcement reflects our commitment to sustainable regulation and addresses disclosures that are not working for consumers, giving firms the freedom to communicate with their customers in a more flexible and open way,” he added.
Who could benefit?
The FCA has identified four communication requirements that it would like to remove and those most likely to benefit from the changes:
The Consumer-Friendly Principles and Practices of Financial Management – beneficiaries would be insurance companies operating with-profits businesses, their customers, and firms providing advice on this business.
Short report – beneficiaries would be authorised fund managers of undertakings for collective investment in transferable securities (UCITS) schemes, non-UCITS retail schemes, and service providers.
The Initial Disclosure Document/Combined Initial Disclosure Document – beneficiaries would be home finance and investment firms, as well as general insurance firms.
Services and Costs Disclosure Document – beneficiaries would be firms that offer advice to retail clients or arrange transactions for them in relation to packaged products.
In June 2015, the FCA published a discussion paper on “Smarter Consumer Communications”, in which it called on firms to think about how they could improve their communications to help consumers make more effective decisions about their finances.
At that time, the FCA also announced its intention to consult on the removal of a number of existing disclosures, as part of its commitment to creating a sustainable regulatory framework.
The consultation will close on 18 December 2015.
