UK Financial Conduct Authority writes to Treasury Committee on the FCA's regulatory perimeter

The House of Commons Treasury Committee has published a letter (dated December 6, 2024) from Nikhil Rathi, Chief Executive of the Financial Conduct Authority, regarding the FCA's perimeter report. In the letter, Mr. Rathi explains that he is keen to maintain transparency about the actions the FCA is taking on the perimeter and sees the December report as a refreshed opportunity for the FCA to discuss with both HM Treasury and the Treasury Committee some of the current strategic gaps in the overall U.K. legislative framework.

The letter refers to various longstanding concerns including:

• whether investment consultants should be within the perimeter, especially since the liability-driven investment crisis.
• the issue of SME lending and the FCA's keenness to work with the government to reform the Consumer Credit Act 1974.
• the continued risks of harm where principals do not adequately oversee the activities of their appointed representatives.
• where the perimeter should lie in relation to sports and non-financial spread-betting. In the FCA's view, an alternative framework for sports spread-betting could be more tailored to the risks of sports gambling.

The FCA published its updated perimeter report on December 9, 2024.

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