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UK Finance seeks Consumer Duty exemption for wholesale banks, streamlining of ring-fencing and ARGA, and EIS/SEIS and PISCES reforms to boost UK capital markets

Published on: 01 April 2025

Published by a Law360 reporter
Legal News
Article summary

UK Finance, which speaks for 300 firms, said in a report produced with EY that wholesale banks lacking direct retail customers should be excluded from the Consumer Duty, a consumer-protection regime that requires good outcomes for consumers. The trade association argued that the Duty piles on cost and complexity, discouraging the supply of innovative products. It is a friction that regulators ought to resolve to improve the flow of capital into investments. The report added that wholesale investment banks have limited control over consumer outcomes and are already covered by significant consumer-facing obligations such as MiFID II and the principle of treating customers fairly. The Markets in Financial Instruments Directive II (MiFID II) is an EU legacy regulation that provides an investor-protection framework, requiring investment firms to act in the best interest of their clients...

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