The FCA’s consultation CP26/23 will interest wholesale firms that do not directly serve retail clients but felt forced to change their business when the Consumer Duty was first introduced.
Rachel Serene, Macfarlanes
The aim of the reforms is to rebalance risk and allow firms to make well-founded assessments of whether a client meets the threshold of a professional client.
The FCA, PRA and HM Treasury have each issued consultations setting out reforms to the SMCR.