The UK Financial Conduct Authority (FCA) on Friday reached the final step of its consultation on regulation for cryptocurrency firms and published a new consultation on how consumer duty would apply to this sector. In its statement, the FCA asked for feedback with a March 12 deadline on further rules and how consumer duty should be applied to cryptoasset companies operating in the United Kingdom. It also said it aims to open the application gateway for cryptoasset permissions in September 2026. The Cons ...

The UK’s Financial Conduct Authority (FCA) has confirmed changes aimed at simplifying its insurance rules and reducing expenses for insurers, while preserving suitable protection levels for smaller commercial customers. This move is designed to provide “flexibility and responsibility” to insurance companies, allowing them to determine how often they review their products and how much continual professional development (CPD) is undertaken by staff. The FCA has indicated that further adjustments will be ma ...

Core Insights - The development of modern financial services has heavily focused on technical functionality, often neglecting the human element that is crucial for consumer impact [1][2] - Financial service providers should aim to deliver added value to customers rather than solely focusing on technical specifications [2] Group 1: Human Element in Financial Services - Many consumers are experiencing financial anxiety and low confidence in managing their finances, with 20.3 million people in the UK living in financially vulnerable circumstances, a 16% increase from 17.5 million in 2022 [3] - There is an urgent need for assistance, which is being addressed through initiatives like Consumer Duty and Open Finance, allowing providers to utilize richer data insights to improve consumer outcomes [4] Group 2: Data Utilization and Personalization - Raw data alone is insufficient; understanding individual financial circumstances, behaviors, and preferences is essential for offering hyper-personalized services that enhance customer satisfaction and drive growth [5] - Tailoring products and services to meet specific needs can serve as a significant growth lever for the financial services industry [6] Group 3: Open Banking and Its Impact - The UK is a leader in Open Banking, with over 15 million people and businesses using Open Banking services as of July 2025, representing nearly one in three adults [7] - Open Banking is part of a larger ecosystem that can transform financial experiences through better utilization of transaction data [7]

Core Viewpoint - The UK Financial Conduct Authority (FCA) is initiating a consultation to determine if crypto firms should adhere to the same regulatory standards as traditional financial institutions, aiming to establish minimum requirements while considering the unique characteristics of the crypto sector [1][2]. Group 1: Regulatory Framework - The consultation paper CP25/25 explores the application of existing FCA Handbook rules to cryptoasset activities, with the goal of fostering a competitive and sustainable market that supports innovation while enhancing consumer trust [2][3]. - The FCA seeks to align crypto oversight with existing standards for banks and financial institutions, including governance obligations, systems to combat financial crime, and operational resilience measures, potentially introducing Environmental, Social, and Governance (ESG) requirements [3]. Group 2: Consumer Protection - A significant discussion point is whether the FCA's Consumer Duty should apply to crypto, which mandates firms to act in ways that yield positive outcomes for customers [4]. - The FCA is soliciting input on complaint handling processes, including the possibility for customers to refer disputes to the Financial Ombudsman Service [4]. Group 3: Industry Engagement and Feedback - The FCA has set two deadlines for feedback: stakeholders can comment on consumer duty and complaints handling until October 15, 2025, and responses to the broader consultation proposals are due by November 12, 2025, with final rules expected to be published in 2026 [7]. - The FCA plans to conduct a series of in-person and virtual events to facilitate industry engagement, seeking feedback from various stakeholders including crypto firms, trade groups, law firms, auditors, consumer advocacy groups, policymakers, and academics [8].