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On June 29, 2026, the Financial Conduct Authority (FCA) opened a consultation on targeted changes to the scope and proportionality of the Consumer Duty. The consultation proposes amendments to FCA rules and non-Handbook guidance to clarify the Duty's application across different market segments and distribution chains. The FCA is consulting on four key areas: removing business with non-UK customers from the Duty's scope; clarifying where the Duty applies and does not apply; explaining how firms can rely on each other in distribution chains and apply the Duty more proportionately; and clarifying the interaction between the Consumer Duty and other product governance rules. The FCA said these changes aim to give firms greater confidence in the Duty's scope while promoting a proportionate approach based on a firm's role. The proposals are intended to reduce unnecessary cost and complexity while maintaining strong protections for retail customers. The consultation is particularly relevant to regulated firms with roles early in distribution chains, including wholesale sector participants; firms that manufacture retail products or services with other firms; firms operating in complex distribution chains; and those conducting retail business for customers outside the UK. The Consumer Duty, which came into force in 2023, sets high standards of consumer protection across retail financial services using an outcomes-based approach. The FCA said evidence suggests the Duty is being applied more widely and intensively than intended, particularly in wholesale markets and complex distribution chains. The consultation closes on September 18, 2026. Responses can be submitted via the FCA's online response form or sent in writing to the Consumer Duty Policy Team at 12 Endeavour Square, London E20 1JN, or emailed to [email protected]. The FCA expects to publish a policy statement summarising responses and make any new rules in Q1 2027.