FCA explains how rule reviews inform regulatory simplification

What happened

The Financial Conduct Authority has published an explanation of how it reviews existing rules, setting out its approach to simplifying requirements while maintaining consumer protections and accountability.

The regulator uses evidence assessments, post-implementation reviews and impact evaluations under its Rule Review Framework. It also draws on supervision, data monitoring, market studies and calls for evidence to assess whether requirements are working as intended.

The blog brings together examples of this approach rather than presenting a single new rule change. The FCA says reviews help establish whether interventions have met their objectives and inform future decisions.

Why it matters

For regulated firms, the FCA links this work to opportunities to remove unnecessary requirements and give businesses greater flexibility. It says the Consumer Duty’s outcomes-focused approach allows it to reconsider reliance on more prescriptive rules.

Among its examples, the regulator cites changes announced in August 2026 to UK transaction reporting. These reduce reporting fields and remove some obligations, with expected annual savings of more than £100m for firms, according to the FCA.

It also points to mortgage changes introduced in 2025 to simplify requirements and make it easier for consumers to remortgage with another lender, shorten their mortgage term and discuss options with firms while retaining access to advice.

Reviews do not necessarily lead to deregulation. The FCA says evidence that the high-cost short-term credit price cap was delivering better consumer outcomes, together with stakeholder feedback, informed its decision to retain the cap.

Context / What to watch

The FCA says it is progressing an evaluation of its 2018 persistent debt interventions and will publish it soon.

It also reports completing the first phase of Senior Managers and Certification Regime reforms in 2026. A second phase of broader reforms is under consultation and depends on new legislation being finalised.

Firms and consumer groups can contribute through consultations, review activity and the regulator’s feedback tool. The FCA presents this external evidence as an important input into decisions about whether to retain, update or remove requirements.