FCA consults on removing non-UK business from Consumer Duty

The Financial Conduct Authority (FCA) has published a consultation on removing business with non-UK customers from the scope of the Consumer Duty, aiming to reduce burdens on wholesale businesses.

The regulator said the change would make it easier for wholesale financial businesses involved in retail markets to comply with the Consumer Duty.

It forms part of wider proposals from the FCA, which have been designed to give wholesale firms greater confidence in applying the Consumer Duty proportionately.

Under the proposals, clearer boundaries will be outlined around what is out of scope, so wholesale firms can focus on running their business rather than having to show that the duty does not apply.

The regulator also proposed providing greater clarity on when and how firms can rely on one another when they work together in distribution chains, and how they can apply the Consumer Duty more proportionately.

Its changes are designed to clarify when the Consumer Duty applies, and when it doesn’t, to give firms greater confidence in its scope, while promoting a more proportionate approach based on a firm’s role to reduce unnecessary cost and complexity while preserving retail customers’ protections.

“The Consumer Duty is helping deliver good outcomes and build confidence for retail consumers, but it was never intended to become a Wholesale Duty, imposing on deals between sophisticated parties,” commented FCA executive director of markets, Simon Walls.

“That’s why we are refining its scope to provide greater clarity to wholesale markets and keep the focus on the consumer outcomes it was created to improve.”

The consultation closes on 18 September 2026.

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