Raising Standards, Regulatory Priorities and SDR: What the FCA’s Latest Moves Mean for You

Rachel MacRae

Hello and welcome to the B-Compliant Podcast. I’m Rachel MacRae, and in this episode we’re focusing on some key updates from the FCA that are particularly relevant for our clients.

Unknown Speaker

And I’m Vicky Pearce. We’ve got a busy schedule today, haven’t we Rach? So let’s crack on – where would you like to start?

Rachel MacRae

We’re gonna start with the FCA’s Raising Standards seminar for compliance consultants, which you went to this week, Vicky. Then we’ll move into some reporting changes, credit information, and the new Regulatory Priorities reports. And finally, we’ll talk about insurance, SDR labels, and whether compliance really does beat the joy out of advice.

Unknown Speaker

Spoiler: we don’t think it should. But let’s start with the seminar. The FCA set out some of its key focus areas for the year ahead. The big three that really came through were anti‑money laundering, consumer value, and being more of a supportive regulator.

Rachel MacRae

Yeah, that “supportive regulator” bit is interesting. It’s not just about enforcement, it’s about the FCA actually engaging more with the firms and people who help keep standards up… like us.

Unknown Speaker

Exactly. A clear theme was closer engagement with compliance consultants. The FCA recognises that it often directs firms and individuals to consultants for ongoing support and guidance, so it wants a more collaborative relationship with our sector.

Rachel MacRae

Which, from our point of view, is a positive step. If the FCA’s talking to consultants about what it’s seeing, what good looks like, what poor looks like, that can only help firms get clearer, more consistent messages.

Unknown Speaker

Speaking of messages, one of the standout announcements was around communications. The FCA said it will no longer be issuing Dear CEO letters to firms. Instead, we’re going to see examples of good and poor practice published on the FCA’s website.

Rachel MacRae

So, instead of the drama of “Have you seen the latest Dear CEO letter?”, we now get “Have you refreshed the FCA website this week?”. Very modern.

Unknown Speaker

Living the dream. The idea is more transparency, and practical examples firms can benchmark against. But crucially, these won’t be sent directly to firms; they’ll just be available online.

Rachel MacRae

And that’s the bit that worries me. If you’re relying on something landing in your inbox with “Dear CEO” in bold, you notice it. If it’s just quietly uploaded to a web page, the risk of missing something important jumps up.

Unknown Speaker

Yes. From our side, we’ll keep a very close eye on FCA publications and continue to share relevant updates through our bulletin for clients and this podcast. But firms that don't have external compliance support, there is a need to be more proactive now—have someone tasked with regularly checking FCA content, not just waiting for a letter.

Rachel MacRae

And it ties into another point from the seminar: how the FCA decides which firms get compulsory surveys or information requests, like section 165 requests. One factor they mentioned is whether a firm’s had any recent contact with them.

Unknown Speaker

Yes, that was quite an interesting insight. Contact could mean attending FCA events or using the FCA helpdesk. Firms that haven’t engaged for a long time might actually be more likely to be selected for those compulsory requests.

Rachel MacRae

So the “if we stay very quiet, maybe no one will notice us” strategy may not be the winner some people hoped. It’s a useful point for firms to reflect on—whether a bit more constructive engagement with the regulator would actually be beneficial.

Unknown Speaker

Exactly. So to wrap this chapter up: the FCA’s focusing on AML, consumer value, and being more supportive; it wants closer engagement with compliance consultants; Dear CEO letters are out, website‑based good and poor practice examples are in; and firms really need to step up their proactive monitoring of FCA communications, and think about their level of engagement with the regulator.

Rachel MacRae

Alright, let’s move on to our next cluster of updates: CCR 0 0 9, the Credit Information Market Study, and the new Regulatory Priorities reports. That’s quite the trilogy.

Unknown Speaker

It is. Let’s start with CCR double 0 9. This is a new FCA regulatory return, which is being added to firms’ reporting schedules from Monday 2nd of March.

Rachel MacRae

This is very specifically for firms with credit permissions, such as Debt Counselling permissions (we often see advice firms with this one on their register) so if this is you, your ears should be pricking up right now.

Unknown Speaker

The return is part of the FCA’s efforts to streamline and rationalise existing reporting requirements. Once it’s on your schedule from 2nd of March, you’ll have 40 business days from that date to submit it.

Rachel MacRae

Which sounds like ages… until you realise that in between you’ve got normal business, client work, and about sixteen other returns. So the message is: be proactive in preparing and completing CCR 0 0 9. Don’t assume you can do it the day before the deadline.

Unknown Speaker

Exactly. Build in enough time for data gathering, checks, and sign‑off. Now, linked to the wider credit space, the FCA’s also published a consultation on implementing remedies from its Credit Information Market Study.

Rachel MacRae

This one’s about the quality, consistency and sharing of consumer credit information across the market, isn’t it?

Unknown Speaker

Yes. The aim is to support better lending decisions and improved consumer outcomes. The proposals touch on how firms share credit information with credit reference agencies, data accuracy, and how disputes are handled.

Rachel MacRae

So even if you’re not operating in the consumer credit space— if it’s just part of your wider permissions—you really should review that consultation and think about how those proposals might impact your business model and processes.

Unknown Speaker

The FCA is asking for feedback on the proposals, with responses requested by 1st of May 2026. So there’s time, but again, not something to leave to the last week.

Rachel MacRae

Let’s pivot to the new Regulatory Priorities reports. These are the shiny new replacements for the old portfolio letters. Because apparently having more than 40 different letters floating around wasn’t quite the model of simplicity.

Unknown Speaker

Yes, the FCA’s acknowledged that having all those separate portfolio letters created additional complexity. Firms often had to look at several letters to understand what applied to them. So, as part of streamlining regulation and simplifying communications, they’re now publishing sector‑level Regulatory Priorities reports instead.

Rachel MacRae

We’ve got nine of these sector reports coming, each one setting out key regulatory priorities, upcoming developments and links to more detailed guidance. The idea is they’re easier to navigate and more consolidated.

Unknown Speaker

They also include clear actions for firms and will be updated on an annual cycle. And this shift lines up with what we mentioned earlier—the FCA moving away from Dear CEO letters and towards more sector‑based communication.

Rachel MacRae

Worth saying, the expectations haven’t gone away just because the format looks friendlier. Boards and senior management are still expected to review the relevant Regulatory Priorities report carefully and take action where needed.

Unknown Speaker

Yes, the responsibility hasn’t changed—it’s just packaged differently. So in practice: check whether there’s a Regulatory Priorities report for your sector, make sure the board and senior team have read it, and map the FCA’s priorities against your own risk and conduct frameworks.

Rachel MacRae

So, in summary: if you’ve got credit permissions, prep for CCR 0 0 9 and your 40‑business‑day submission window from 2nd of March; if you touch consumer credit, review the Credit Information Market Study consultation and its proposals on data sharing, accuracy and disputes; and for everyone, get used to the new Regulatory Priorities reports as your main sector‑level roadmap from the FCA.

Rachel MacRae

without completely moving on, let’s dig into the first of those Regulatory Priorities reports, which focuses on the insurance sector. Even if you’re mainly an advice firm, this one’s still very relevant, especially if you’re involved in protection or insurance distribution.

Unknown Speaker

Yes, while it’s aimed at insurers and intermediaries, a lot of the themes line up very closely with Consumer Duty and spill over into advice firms’ responsibilities. A central priority is making sure consumers clearly understand what their insurance or protection product does—and does not—cover.

Rachel MacRae

So not just “Here’s a 40‑page policy document, good luck.” It’s about balanced explanations during the recommendation process, especially around exclusions, limitations and suitability, so clients actually understand what they’re buying.

Unknown Speaker

Exactly. And the FCA emphasises that client communications should genuinely support understanding, not just tick a disclosure box. For firms with an ongoing role post‑sale—claims support, signposting and so on—there’s also an expectation around monitoring outcomes.

Rachel MacRae

And that is where the Consumer Duty element comes in. Firms need to be able to evidence how they’re testing and monitoring consumer outcomes in practice—not just asserting that outcomes are good.

Unknown Speaker

The report also highlights access to insurance and protection, particularly for consumers in vulnerable circumstances. The FCA’s interim findings from its pure protection market study suggest the market’s working well in many respects, but there’s more to do to address the protection gap and improve awareness and engagement.

Rachel MacRae

So for advice firms, it’s a good moment to reflect on how well your propositions meet the needs of different client groups; whether your advice process really supports informed decision‑making; and how you assess and evidence fair value—especially where commission, premium finance or regular payment options are involved.

Unknown Speaker

The FCA’s also supportive of innovation, including technology and AI, but with a clear caveat: firms must closely monitor consumer outcomes and manage risks properly. Governance and oversight still have to be robust, with Consumer Duty woven through everything.

Rachel MacRae

And they’re talking about simplifying insurance regulation and data requirements where they can, while still relying on Consumer Duty as the key driver of good outcomes. So it’s not a relaxation of standards, it’s a chance to focus more sharply on fair value and outcomes.

Unknown Speaker

Staying with outcomes and clarity, let’s touch on the FCA’s new Good and Poor Practice paper on Sustainability Disclosure Requirements labels—SDR labels.

Rachel MacRae

This paper looks at how fund managers are using sustainability labels, and gives practical examples of what the FCA sees as effective and less effective approaches. The aim is to help firms prepare clear, accurate, consumer‑focused pre‑contractual disclosures.

Unknown Speaker

It covers examples of good and poor practice across all four SDR labels: Sustainability Focus, Sustainability Improvers, Sustainability Impact, and Sustainability Mixed Goals.

Rachel MacRae

So if you’re a fund manager and have already got labelled funds, or you’re thinking about adopting these labels... or if you are an advice firm looking to recommend a labelled fund... it’s really worth reading the publication in full. It gives helpful insight into how the FCA is interpreting the rules in practice—without us having to guess.

Unknown Speaker

And again, clear and accurate disclosures are the thread running through this. Labels should actually reflect the underlying approach, and the way they’re explained to consumers has to be straightforward and not misleading.

Rachel MacRae

Which brings us nicely to culture and mindset. You may remember a few weeks ago, we talked about an article in FT adviser about Compliance being a joy killer? Well, we’ve just published a blog responding to that question.

Unknown Speaker

Because nothing says “joy” like a new reporting schedule. But genuinely, our view is that good compliance should support advisers, not stifle them. Done well, it adds real value—to clients, and to the sustainability of the business.

Rachel MacRae

If you haven’t read the blog yet, we’d really encourage you to have a look. It explores how you can align strong regulatory expectations—like Consumer Duty, fair value, clear communications—with an advice process that still feels human and rewarding.

Unknown Speaker

And we’re not stopping there. Over the coming weeks, we’ll be launching a short industry survey to understand what regulated firms actually want from their compliance partners. Less guesswork, more listening.

Rachel MacRae

Your insight really does matter. So when you see that survey, please take a few minutes to share your experiences—what helps, what doesn’t, and how compliance can be a genuine enabler in your business rather than a necessary evil.

Unknown Speaker

To wrap up today: keep an eye on the FCA’s website now that Dear CEO letters are gone; be proactive on CCR double 0 9 and the credit information consultation if you’ve got credit permissions; make sure your board is engaging properly with the new Regulatory Priorities reports; and, for insurance and protection, really embed Consumer Duty, fair value and outcome monitoring into your day‑to‑day.

Rachel MacRae

And maybe, while you’re doing all that, carve out ten minutes for our blog on whether compliance is beating the joy out of advice, and watch out for that survey. Vicky, thanks for all the insights today.

Unknown Speaker

Thanks Rachel, always a pleasure. And thanks to everyone for listening.

Rachel MacRae

We’ll leave you to your Regulatory Priorities reports. Take care, and we’ll speak to you next time.