UK FCA feedback statement on expanding consumer access to investments

The UK Financial Conduct Authority (FCA) has published a feedback statement (FS26/3) to its discussion paper (DP25/3) on how its rules and regulatory framework could better support consumers investing without an adviser and setting out its next steps. The discussion paper was part of a set of publications forming the "landmark package to boost UK investment culture". The FCA has confirmed in its feedback statement that it does not intend to take forward every potential reform at once. Instead, it will prioritise the areas where further work can make the greatest difference to consumer outcomes, while giving firms and the market time to prepare for change. The FCA's next steps include:

• reviewing its financial promotions rules for high-risk investments and working with stakeholders to assess the harm caused by any current inconsistencies, including those highlighted in the feedback statement. The FCA still considers, despite some feedback that peer-to-peer investments should fall in the restricted mass market investment category
• consulting on its rules and guidance on risk warnings in financial promotions for mainstream investments in H1 2027, supported by consumer testing
• reviewing how the appropriateness assessment works in practice, including the impact of the current model and the merits of alternatives. The FCA plans to engage with stakeholders in early 2027
• engaging with HM Treasury on the need for legislative change to address concerns about the number of consumers being inappropriately opted out of protections.

Separately, the FCA has already begun a multi-firm review of how firms manufacturing model portfolio services are achieving good outcomes for consumers and expects to publish its findings by Q1 2027. The FCA also reminds firms that the consumer composite investments regime will come into full force on 8 June 2027 and it plans to publish final rules on simplifying consumer investment disclosures by the end of the year.

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