FCA — CP26/23 “Removing non-UK business from the Consumer Duty”

Tag: S-2026-06-29-fca-cp26-23-consumer-duty-scope Type: consultation paper (report) Author(s): Financial Conduct Authority Date of source: 2026-06-29 (consultation opened) Date ingested: 2026-06-30 Authority weight: high — primary FCA consultation setting proposed Handbook scope changes; note it is a proposal out for consultation, not final rules (responses due 18 September 2026; rules expected Q1 2027). Raw file: S-2026-06-29-fca-cp26-23-consumer-duty-scope.md. External URL: https://www.fca.org.uk/news/press-releases/non-uk-business-removed-consumer-duty-scope-reduce-burdens-wholesale-businesses

What it claims

On 29 June 2026 the FCA opened consultation CP26/23, proposing to narrow the scope of the Consumer Duty so that business with genuinely non-UK customers is removed from the Duty “where there is no clear UK link or reasonable expectation of UK protection” [S-2026-06-29-fca-cp26-23-consumer-duty-scope]. The FCA frames the change as a response to concerns that the Consumer Duty — in force since 2023 — “has been applied more widely and more intensively than intended in wholesale markets,” and as a measure to “reduce burdens on wholesale businesses” involved in retail markets [S-2026-06-29-fca-cp26-23-consumer-duty-scope].

Alongside the non-UK carve-out, the consultation proposes clearer boundaries around what is out of scope and more clarity on firms’ responsibilities when they work together, including across distribution chains and in the design of complex products [S-2026-06-29-fca-cp26-23-consumer-duty-scope]. Feedback is requested by 18 September 2026, with the FCA expecting to publish a policy statement and make any new rules in Q1 2027 [S-2026-06-29-fca-cp26-23-consumer-duty-scope].

The publication is part of the FCA’s broader burden-reduction / simplification agenda (the same agenda that produced PS26/6 SM&CR streamlining, PS26/8 R2B2 data, and CP26/15’s reliance on the Consumer Duty over prescriptive CONC rules) rather than an AI-specific measure [S-2026-06-29-fca-cp26-23-consumer-duty-scope].

Notable quotes

“Wholesale financial businesses involved in retail markets will find it easier to comply with the Consumer Duty.” — FCA press release, 29 June 2026

Removing business for “genuinely non-UK customers from the Duty’s scope where there is no clear UK link or reasonable expectation of UK protection.” — FCA press release, 29 June 2026

What’s speculative vs. asserted

• Asserted (FCA proposal / fact): the 29 June 2026 open date; the non-UK-customer scope carve-out; the “applied more widely and intensively than intended in wholesale markets” rationale; the distribution-chain and complex-product clarity proposals; the 18 September 2026 response deadline; the Q1 2027 rules expectation.
• Proposed / not yet in force: all scope changes are consultation proposals; final perimeter test wording, transitional provisions and the eventual rules are not settled and could change after consultation.
• Caveat (ingestion): detailed scope mechanics summarised from the FCA press release and trade-press coverage; the full CP26/23 PDF was not separately retrieved this run.

Topics this feeds

• FCA — primary regulator position; concrete instance of the FCA’s burden-reduction agenda and a material change to the Consumer Duty perimeter.
• Consumer Duty — (no page yet — suggested future page) the Duty whose scope is being narrowed.

Open questions raised

• Will the final perimeter test (“clear UK link or reasonable expectation of UK protection”) create a new evidencing obligation — i.e. firms having to demonstrate and document which customers/business fall in or out of scope — that offsets the intended burden reduction?
• How will the “responsibilities when firms work together … across distribution chains and in the design of complex products” clarifications interact with manufacturer/distributor obligations already in the Duty, and with AI-enabled product design and distribution?
• Does this scope-narrowing signal a broader FCA appetite to recalibrate the Consumer Duty’s reach, and how does that sit alongside its use as the primary lever for AI consumer-outcome oversight (see FCA approach to AI)?

Ingestion note

Identified via WebSearch (the FCA publications landing page did not list CP26/23 by name in the retrieved snapshot) and confirmed against the FCA press release URL plus corroborating trade-press coverage (Financial Planning Today, Professional Adviser, International Adviser, Portfolio Adviser). The reference number CP26/23 is attributed to the FCA and secondary coverage. The full consultation PDF was not downloaded this run, so claims turning on exact drafting should be confirmed against the CP26/23 text. Not AI-specific — ingested for the Consumer Duty scope/evidence theme and the FCA simplification agenda.