Committee publication · Correspondence · 28 January 2026
Correspondence from the Chief Executive of the FCA, responding to follow-up on oral evidence given before the Committee in December 2025, dated 21 January 2026
From: Treasury Committee
Summary
FCA Chief Executive Nikhil Rathi responds to Treasury Committee follow-up questions on Leeds Reforms implementation, legislative requirements, and Maiden Life funeral protection plans. The FCA reports 9 of ~30 reforms completed, identifies legislative barriers to further progress, and outlines immediate priorities including sustainability disclosures and redress system modernisation. The FCA requests statutory timetables for HM Treasury decisions and clarification of government risk appetite to support agile regulation.
Key findings
- FCA has completed 9 of approximately 30 Leeds Reforms initiatives, including insurance rules simplification, Consumer Duty review for wholesale firms, and launch of scale-up unit; remaining elements span 2026–2027 with phased implementation where legislation permits.
- Key legislative blockers identified: new products (Buy Now Pay Later, targeted support), cryptoasset regulation (resolution, criminal market abuse), open banking (Data Use and Access Act powers), and Senior Managers & Certification Regime wider reforms all require parliamentary action.
- FCA seeks statutory requirement for HM Treasury to formally respond to perimeter change recommendations within set timeframe, and requests government articulation of risk appetite and tolerance metrics to enable regulatory reform at pace.
- Immediate priorities (Jan–Mar 2026): sustainability disclosure consultation, provisional licensing regime acceleration, voluntary targets for regulatory approval processes, finalised redress policy, value-for-money framework feedback, and open finance roadmap publication.
- Maiden Life funeral protection plan investigation ongoing; FCA will complete initial review by end February 2026, examining conduct of manufacturers, distributors, and 71 affected credit unions against PROD, Consumer Duty, and Credit Unions Act rules.
Tone
ProceduralTopics
Key actors
Nikhil Rathi (FCA Chief Executive), Dame Meg Hillier (Treasury Committee Chair), HM Treasury, Financial Conduct Authority (FCA), Maiden Life, CMutual, Financial Ombudsman Service
Notable line
“Deep reform to support economic growth requires a better articulation of risk appetite and we have discussed possible metrics to support this.”
Key Quotes
“While we are moving fast, there are often areas where we have to wait for legislation or Government action.”
“… and have fulfilled 9 so far, including simplifying insurance rules, reviewing application of the Consumer Duty to wholesale firms, consulting on client categorisation, launching a scale-up unit and the smart data accelerator, and enabling firms to take part in cross-border trade with Switzerland under the Berne Financial Services agreement.”
“Legislation is nearly always needed to bring new products or services, such as Buy Now Pay Later, into our perimeter.”
“We remain supportive of the suggestion from the previous formation of this Committee to make it a statutory requirement for HM Treasury to formally respond, within a set timeframe, to recommendations for perimeter changes.”
“Without addressing this, HM Treasury 's proposals will fail to deliver improved regulatory agility and responsiveness.”
“We recognise the distress people have experienced because of the withdrawal of Maiden Life's family protection plan.”
“We expect to complete our initial review by the end of February 2026, given the complexities and historic nature of some of the communications between CMutual and the 71 affected credit unions.”
Source · parliament.uk record ↗