The Financial Conduct Authority has published Consultation Paper CP26/22, proposing to simplify insurance handbook rules, cut reporting requirements, and lean more on Consumer Duty instead of new rules.
What happened
The FCA released the paper on 29 June 2026. The package aims to reduce unnecessary complexity while keeping consumer protections. It includes simplifying handbook rules, reducing data and reporting burdens, and reviewing the Senior Managers and Certification Regime to cut cost. The FCA says it will rely more on Consumer Duty outcomes than on fresh prescriptions, a notable change in how it regulates.
What this means for you
For consumers, simpler rules should mean clearer expectations and outcomes, though the FCA stresses that protections remain. For firms, fewer detailed rules arrive with higher expectations to evidence good outcomes. Our Consumer Duty explainer and the Regulation hub explain the backdrop. The FCA is consulting, so the final changes are still to come.
Sources
- FCA, Consultation Paper CP26/22, Simplifying the insurance rules (29 June 2026).
- JD Supra summary of FCA CP26/22 (July 2026).